UK tax authority targets crypto holders for unpaid gains, with penalties up to 100% of owed amounts plus interest.
The UK’s HM Revenue and Customs sent 81,000 warning letters to crypto holders in the 2025/26 financial year, nearly triple the 27,714 issued in 2024. The letters address suspected unpaid taxes on gains from the 2022-2025 crypto bull market.
HMRC clarified that selling, gifting, or swapping crypto may trigger capital gains tax obligations. Unpaid taxes can incur penalties of up to 100% of the owed amount, along with interest. The agency expects new powers in 2026 to compel offshore crypto firms to disclose customer data.
The measures aim to raise £315 million by 2030, reflecting heightened scrutiny on crypto-related tax compliance.