HMRC Issues 81,000 Crypto Tax Warning Letters as UK Targets Unreported Bull-Run Gains

HM Revenue and Customs (HMRC) has sharply stepped up scrutiny of UK crypto users in the 2025–2026 financial year, sending more than 81,000 warning letters to people it believes may have unpaid tax, the BBC reported citing a Freedom of Information request. The tally is almost triple the 27,714 letters issued in 2024. HMRC says a significant portion of the unpaid amounts is linked to profits made during the crypto bull market between 2022 and 2025. The agency has reiterated that tax liabilities can arise when cryptoassets are sold, gifted, swapped, or used to buy goods and services. Those who fail to pay may face interest and penalties of up to 100% of the tax due. HMRC also warned that offshore transfers can bring more severe consequences. Enforcement is set to widen further as the tax authority prepares to receive new powers in 2027. Under the planned regime, offshore firms will be required to provide customer information to HMRC, a move the agency estimates could generate £315 million ($430 million) in additional revenue by 2030. Neela Chauhan, a partner at accounting firm UHY Hacker Young, told the BBC that many traders are young and have limited prior experience dealing with HMRC. She said some assume the agency has little visibility into their crypto activity. Chauhan added that authorities suspect many investors are evading tax, and that identifying unpaid liabilities among wealthy holders could become significantly easier once the new powers are in place. While HMRC tightens oversight, access to banking services is emerging as a major industry concern. Earlier this month, Parliament’s Crypto and Digital Assets All-Party Parliamentary Group wrote to the chief executives of major UK banks seeking clarity on how they handle cryptocurrency businesses. Labour MP Gurinder Singh Josan and Lord Vaizey of Didcot said the letter followed repeated complaints from firms unable to open bank accounts, along with reports of payment restrictions. The group asked banks to outline their policies, transaction limits, the rationale behind those decisions, and whether the UK’s incoming crypto rules could alter their stance. The MPs acknowledged banks’ responsibility to combat financial crime and protect customers, but argued that firms should be assessed on their individual risk profiles rather than judged solely for operating in the sector. Vaizey described the banking issues as “an unnecessary piece of friction.” Research from the UK Cryptoasset Business Council found banks were blocking or delaying roughly 40% of attempted transfers to digital-asset exchanges. The post UK Sends 81,000 Crypto Tax Warnings as HMRC Targets Unpaid Bull Run Gains appeared first on CryptoPotato.