From January 2026, Crypto asset service providers (exchanges, wallet platforms and trading apps) will start sending personal and transaction data to HMRC under the Crypto asset Reporting Framework (CARF). If you are UK tax resident and hold or trade crypto, HMRC will have far more information about your activity. Now is the time to check that your crypto tax reporting, both past and future, is correct.
What is changing from 2026?
Under CARF and related HMRC rules:
- Cryptoasset service providers will be required to collect and report data on UK users
- Information will include identity details, tax residence and summaries of transactions
- HMRC will use this data to identify under-reported or unpaid tax on crypto gains and income
- New crypto sections on the UK self assessment return increase expectations around detailed reporting
This affects a wide range of users, including those using platforms such as Binance, Coinbase, Kraken, Crypto.com, KuCoin, Metamask and other exchanges and wallets.
Who is this page is for?
You are likely to benefit from speaking to us if you:
- Hold, trade or invest in cryptoassets as an individual, founder or through a business
- Use multiple platforms or wallets and find it hard to keep complete records
- Are unsure how to report crypto in your UK tax return
- Want to regularise historic crypto tax before CARF reporting starts
- Need joined-up support across personal tax, business tax, accounting and, if needed, restructuring and insolvency
Request a confidential review with a crypto tax specialist
Our Crypto and Digital Asset tax specialist can help you:
- Understand how the cryptoasset reporting framework and CARF rules apply to your situation
- Interpret reports and statements from exchanges and wallets, and turn them into accurate UK tax figures
- Calculate capital gains and income tax positions, including staking, airdrops, DeFi and NFTs
- Prepare or review your UK self assessment tax return where crypto is involved
- Plan ahead for future years, including loss relief and wider personal tax considerations
The focus is on clear explanations, accurate data, and practical steps to stay ahead of HMRC’s expectations.
Talk to a TDD specialist about past crypto tax reporting
Our Tax Disputes & Disclosures specialist can support you if:
- You have unreported or incorrectly reported crypto gains or income
- You are worried about past activity across several exchanges or wallets
- You have received, or expect to receive, an HMRC crypto nudge letter or enquiry
- You want to make a voluntary disclosure before HMRC contacts you
We can:
- Review your historic crypto activity and estimate the likely tax exposure
- Advise on the most suitable disclosure route, including use of HMRC’s disclosure facilities
- Prepare all necessary calculations and narrative to present to HMRC
- Handle correspondence with HMRC and seek to reduce penalties where possible
CARF – Frequently asked questions
What does CARF stand for?
CARF stands for Cryptoasset Reporting Framework. It is an international reporting standard designed to give tax authorities, including HMRC, better data on crypto activity.
When do the new CARF rules apply from?
The rules start from 1 January 2026. From that date, reporting cryptoasset service providers will begin collecting and sharing data with tax authorities.
Under CARF, who must report cryptoasset activity?
HMRC will require UK reporting cryptoasset service providers (RCASPs) – such as exchanges, brokers and custodial wallet providers – to collect and submit user and transaction data.
What data will be provided to HMRC?
RCASPs will be expected to share key identity and tax details, including:
• Full name
• Date of birth
• Address
• Tax identification number (for example, UTR or National Insurance number)
• Confirmation of UK tax residence
What will HMRC do with this data?
• Compare the data against UK tax returns to identify gaps or inconsistencies in reported crypto gains and income
• Use cross-border data sharing to obtain information about UK residents using non-UK platforms
• Issue crypto “nudge letters” and open enquiries where under-reporting is suspected.
Speak to a specialist about how CARF affects you
Have a different question?
Contact someone from our team using the contact form below.
Why work with Menzies?
- Dedicated Crypto and Digital Asset tax specialist focused on UK rules and HMRC practice
- An experienced Tax Disputes & Disclosures team dealing with complex HMRC enquiries and historic disclosures
- Access to wider specialists in Private Client, Business Tax, Accounts, Audit and Restructuring
- Up-to-date insight on CARF, HMRC’s cryptoasset initiatives and related international reporting standards