HMRC to Fine Crypto Investors £300 for Non-Disclosure Under New Reporting Rules

From January 2026, HMRC will gain access to detailed crypto transaction data from UK platforms under the OECD’s new Cryptoasset Reporting Framework (CARF). UK investors who fail to disclose their crypto holdings or income risk penalties of up to £300. The move aims to curb tax evasion and increase transparency across the fast-growing digital asset market.

HMRC Tightens Crypto Tax Rules from 2026

The UK government has confirmed new regulations requiring crypto platforms to share customer transaction details with HMRC as part of the global OECD Cryptoasset Reporting Framework (CARF). From 1 January 2026, all UK crypto holders will need to provide personal details — including name, address, date of birth, tax residence and national insurance number — to their crypto service providers.

Platforms will collect and report information on crypto transactions, including the type of asset, number of units, and value of trades. Service providers who fail to comply or provide incomplete reports could face fines of £300 per user.

HMRC has already strengthened its focus on crypto tax compliance. From the 2024–25 tax year, individuals must declare any crypto gains or income within the new dedicated section of the Self Assessment capital gains pages. This includes transactions involving Bitcoin, Ethereum, Dogecoin and other digital assets.

Crypto profits may attract Capital Gains Tax (CGT) when assets are sold or exchanged, while Income Tax and National Insurance may apply to crypto received from employment, mining, staking, or lending.

Greater Transparency to Combat Tax Evasion

HMRC has made it clear that the new reporting framework is designed to “unmask anyone evading tax due on their crypto profits.” With direct access to global data, HMRC will soon be able to identify individuals who have failed to report or pay the correct amount of tax on their crypto activities.

The Treasury expects the measure to generate up to £315 million in additional tax revenue by April 2030, an amount equivalent to funding over 10,000 newly-qualified nurses for a year.

Global Rollout of the OECD Cryptoasset Reporting Framework

The UK is among the first 52 countries to adopt the CARF, joining jurisdictions such as the EU, Jersey, Guernsey, Isle of Man and South Africa by 2027. Other countries — including the US, Singapore, and the UAE — plan to start data exchanges by 2028.

While the UK’s approach demonstrates a proactive stance on tax transparency, several crypto hubs — including Australia, India, and Vietnam — have not yet signed up.

HMRC Tightens Crypto Tax Rules from 2026

HMRC’s Director General for Customer Strategy, Jonathan Athow, has encouraged all crypto users to “check the details you will need to give your provider” and ensure tax compliance before the new regime takes effect. Those wishing to come forward voluntarily can use HMRC’s Cryptoasset Disclosure Service (CDS), though experts advise seeking professional guidance before doing so.

These new reporting rules do not replace existing legislation but are being introduced under the Finance Act 2002 and Finance (No.2) Act 2023 to enhance international cooperation on tax transparency.

HMRC manuals

Information for crypto investors/users under CARF

Collecting cryptoasset user and transaction data (for platforms/providers)

Cryptoasset Reporting Framework

In summary:

The message from HMRC is clear — crypto investors must ensure full compliance by 2026. Failure to disclose transactions could result in fines and closer scrutiny as the UK aligns with global efforts to tackle tax evasion in the digital asset market.

Get in touch with Naail & Co for tailored advice on crypto tax compliance and disclosure.