HM Revenue and Customs (HMRC) is introducing new rules to ensure UK crypto holders pay the correct tax on their profits.
From January 2026, individuals who own cryptocurrencies such as Bitcoin, Ethereum, or Dogecoin will be required to provide personal details to every crypto service provider they use. Failure to comply could result in a fine of up to £300.
These changes, part of the government’s Plan for Change, aim to identify those who have not been paying the correct tax and increase revenue for vital public services such as the NHS, police, and education. The tax raised is estimated to reach up to £315 million by April 2030, equivalent to funding over 10,000 newly qualified nurses for a year.
Under the new Cryptoasset Reporting Framework, service providers must collect and report users’ names, addresses, dates of birth, tax residence, National Insurance numbers or tax references, and summaries of crypto transactions to HMRC. Providers who fail to submit accurate data could also face penalties.
James Murray MP, Exchequer Secretary to the Treasury, said:
“We’re going further and faster to crack down on tax dodgers as we close the tax gap and deliver on our Plan for Change. By ensuring everyone pays their fair share, the new crypto reporting rules will make sure tax dodgers have nowhere to hide, helping raise the revenue needed to fund our nurses, police and other vital public services.”
Jonathan Athow, HMRC’s Director General for Customer Strategy and Tax Design, added:
“These new reporting requirements will give us the information to help people get their tax affairs right. I urge all cryptoasset users to check the details you will need to give your provider. Taking action now and having this information to hand will help you avoid penalties in the future.”
This framework aligns the UK with international standards set by the Organisation for Economic Co-operation and Development (OECD), allowing tax authorities worldwide to share information.
Crypto holders should already include gains or income from cryptocurrencies in their Self Assessment tax returns. New sections have been added to the capital gains pages for the 2024 to 2025 tax year.
Capital Gains Tax may apply when selling or exchanging crypto, while Income Tax and National Insurance could be due on crypto received through employment, mining, staking, or lending.
Anyone unsure about their tax responsibilities can find guidance on gov.uk or disclose unpaid tax using HMRC’s cryptoasset disclosure service.
