If you own or trade cryptocurrency in the UK, new rules from HMRC are on the way and failing to comply could result in a fine.
Starting from January 2026, HMRC will require crypto buyers, sellers, and service providers to submit detailed information as part of a crackdown on tax avoidance.
What’s Changing?
Cryptoasset holders will be expected to provide the following personal details:
- Full name
- Date of birth
- Home address
- Country of residence
- National Insurance number
Meanwhile, crypto service providers must collect and report:
- The type and value of each cryptoasset
- The type of transaction (buy, sell, etc.)
- The number of units involved
This is part of HMRC’s wider efforts to close gaps in tax compliance linked to digital assets.
What Happens If You Don’t Comply?
HMRC has warned that individuals and platforms must verify the accuracy of the data they collect through due diligence procedures.
“You’ll need to verify that the information you collect is accurate by carrying out due diligence,” HMRC said. “There will be penalties of up to £300 per user for inaccurate, incomplete, or unverified reports.”
Further guidance on how to perform this due diligence will be published by HMRC in due course.
When Might You Owe Tax on Crypto?
If you dispose of cryptoassets, such as by selling tokens, exchanging them, or gifting them, you may be liable for Capital Gains Tax if your gains exceed the annual tax-free allowance.
You might also need to pay Income Tax if you receive cryptoassets as:
- Payment for goods or services
- Mining or staking rewards
- Airdrops
The type of tax you’ll owe depends on how you acquire and use the cryptoassets.
Final Thoughts from Accounting People
With HMRC tightening its grip on digital assets, it’s never been more important for crypto investors and traders to stay compliant.
Whether you’re a casual trader or actively buying and selling through exchanges, ensure you’re keeping proper records and accurately reporting your crypto activity on your tax return.
Stay Informed with Accounting People
The world of crypto tax can be confusing, but we’re here to help.
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