HMRC steps up crypto tax enforcement as voluntary disclosures rise ahead of CARF rollout

HM Revenue & Customs has recovered more than £8 million in unpaid taxes from cryptocurrency investors through 502 disclosure settlement agreements, as the U.K. intensifies scrutiny of crypto tax compliance and the Treasury sets a broader revenue goal for the sector. The settlements were made under HMRC's crypto asset disclosure facility, a mechanism that allows holders to declare unpaid tax before a formal investigation begins. Data obtained through a Freedom of Information Act request showed 280 individuals settled with HMRC in the 2024/25 tax year, contributing £3.5 million in payments. A further 222 settlements were reached the following year, with the total amount rising to about £4.8 million. The disclosure activity sits alongside wider compliance pressure. HMRC has been sending large volumes of "nudge letters" to prompt taxpayers to review whether crypto income or gains were properly reported, and the tax authority has previously estimated crypto tax non-compliance among U.K. investors at between 55% and 95%. Enforcement is set to expand further from January 2026, when the Crypto-Asset Reporting Framework, or CARF, is due to require crypto service providers to report user data directly to HMRC. Alongside that shift, the U.K. Treasury aims to collect £315 million in crypto tax revenue by 2030 from an estimated 7 million crypto holders, underscoring the larger fiscal significance of tighter reporting and disclosure rules.