From January 2026, UK cryptoasset users will enter a new era of tax transparency. Whether you’re investing, trading or holding (HODL) assets such as Bitcoin, Ethereum, Dogecoin, HMRC will soon have greater visibility over your crypto activity than ever before.
This change is part of the UK’s implementation of the Cryptoasset Reporting Framework (CARF), a global standard developed by the Organisation for Economic Co-operation and Development (OECD).
The new reporting rules aim to tackle tax non-compliance, close the tax gap, and help fund vital public services.
What’s changing?
Under CARF, cryptoasset service providers including exchanges, wallet platforms, and trading apps will be legally required to collect and report personal and transactional data to HMRC.
The data collection will begin in January 2026, and includes:
- Full name, date of birth, and residential address
- Tax residence
- National Insurance number or other tax reference
- A summary of your crypto transactions (e.g. disposals, swaps, and gains)
HMRC will then use this information to identify individuals who haven’t correctly reported or paid tax on their crypto gains or income.
“These new reporting requirements will give us the information to help people get their tax affairs right,” — Jonathan Athow, HMRC’s Director General for Customer Strategy and Tax Design
How will this affect you?
If you are UK tax resident, you are already liable to pay Capital Gains Tax (CGT) when you dispose of cryptoassets by selling, exchanging or using them as payment. You may also need to pay Income Tax and National Insurance if you receive crypto through:
- Employment
- Mining
- Staking
- Lending or yield-generating platforms
These tax rules aren’t new, but the enforcement landscape is changing rapidly.
HMRC has introduced new crypto-specific sections on the Capital Gains pages of the 2024/25 self-assessment tax return, signalling a clear expectation for detailed reporting.
What happens if you don’t comply?
If you are UK tax resident, you are already liable to pay Capital Gains Tax (CGT) when you dispose of cryptoassets by selling, exchanging or using them as payment. You may also need to pay Income Tax and National Insurance if you receive crypto through:
- Employment
- Mining
- Staking
- Lending or yield-generating platforms
These tax rules aren’t new, but the enforcement landscape is changing rapidly.
HMRC has introduced new crypto-specific sections on the Capital Gains pages of the 2024/25 self-assessment tax return, signalling a clear expectation for detailed reporting.
What should you do now?
1. Check Your Tax Residency
Your tax reporting obligations can depend on where you are tax resident. If you’re unsure of your residence status, especially if you live, work, or trade across borders, now is the time to clarify it.
2. Keep Accurate Records
Make sure you have detailed, reliable records of your crypto transactions, including:
- Dates of purchase/disposal
- Token types and quantities
- GBP value at the time of each transaction
- Fees paid
- The nature of each transaction (e.g. swap, sale, staking, reward)
3. Review Past Tax Returns
If you’ve held or disposed of crypto in previous years and haven’t declared it, you may need to review your tax filings. A proactive, voluntary disclosure can lead to a quicker resolution with HMRC and will often be treated more favourably than waiting to be contacted by HMRC.
4. Get Your Information Ready
HMRC has encouraged individuals to gather their personal tax details now to avoid issues later. This includes your National Insurance number, Unique Taxpayer Reference (UTR), and current tax residence.
“Taking action now and having this information to hand will help you avoid penalties in the future.”
— Jonathan Athow, HMRC
Final thoughts: don’t wait until 2026
If you are UK tax resident, you are already liable to pay Capital Gains Tax (CGT) when you dispose of cryptoassets by selling, exchanging or using them as payment. You may also need to pay Income Tax and National Insurance if you receive crypto through:
- Employment
- Mining
- Staking
- Lending or yield-generating platforms
These tax rules aren’t new, but the enforcement landscape is changing rapidly.
HMRC has introduced new crypto-specific sections on the Capital Gains pages of the 2024/25 self-assessment tax return, signalling a clear expectation for detailed reporting.
