UK Tax Authority Sends Warning Letters to Over 81,000 Crypto Holders, Triple Last Year's Count

The UK's HM Revenue & Customs (HMRC) has sent over 81,000 warning letters to suspected crypto holders owing tax in the 2025/2026 fiscal year, nearly triple the 27,714 sent in 2024.

HMRC believes most unpaid taxes stem from capital gains during the 2022-2025 bull market. The letters remind users that selling, gifting, exchanging, or using cryptocurrency for purchases may trigger capital gains tax obligations, with violators facing penalties of up to 100% of the tax due plus interest, and heavier penalties for offshore transfers. Additionally, HMRC expects to gain new powers next year to compel overseas crypto platforms to disclose user information, projecting an additional £315 million in tax revenue by 2030.

[TechFlow]