No HMRC letter? UK crypto investors may still owe taxes, expert warns
UK crypto investors must report taxable gains regardless of receiving warning letters from HMRC, as the agency increases data-driven enforcement.Summary
UK cryptocurrency investors face tax obligations even without receiving warning letters from HM Revenue & Customs (HMRC), as the agency significantly increased its issuance of 'nudge letters' to nearly 65,000 in the 2024–25 tax year. Tax expert Andrew Duca warns that non-reporting is illegal, emphasizing that HMRC uses exchange data and international agreements to identify noncompliance, making proactive reporting essential. HMRC is set to gain automatic access to global trading data via the OECD’s Crypto-Asset Reporting Framework (CARF) starting in 2026. Taxable events include token swaps, staking, and yield farming, not just conversion to fiat. Duca advises investors to use specialist crypto tax software due to the complexity of HMRC's three-tier 'spooling' method for calculating gains, and to seek professional advice immediately if contacted.
(Source：Cointelegraph)