HMRC sends more than 81,000 crypto tax warning letters in 2025-2026

HM Revenue and Customs (HMRC), the UK tax authority, sent more than 81,000 warning letters to crypto holders it suspects may have unpaid tax during the 2025-2026 financial year, nearly three times the 27,714 letters issued in 2024, the BBC reported after reviewing a freedom of information request. HMRC said tax obligations can arise when crypto is sold, given away, exchanged or used for purchases, with penalties reaching 100% of the tax owed plus interest. It is preparing new powers for 2027 that would require offshore firms to provide customer information, a measure HMRC estimates could raise £315 million, or $430 million, by 2030. At the same time, UK crypto businesses are reporting difficulty accessing banking services. Parliament’s Crypto and Digital Assets All-Party Parliamentary Group has asked major banks to explain their policies, while research from the UK Cryptoasset Business Council found that around 40% of attempted transfers to digital asset exchanges were blocked or delayed.

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