HMRC sees hundreds settle amid ongoing crypto tax crackdown
Britain's tax authority has collected £3.5 million through its crypto disclosure facility as it prepares to roll out mandatory reporting rules in 2026
The UK’s HM Revenue and Customs has recovered more than £8 million from hundreds of crypto investors as part of its ongoing crackdown on unpaid digital asset taxes.
A total of 502 investors reached disclosure settlements with HMRC during the past two tax years, according to a Financial Times report citing data obtained through a Freedom of Information request submitted by compliance provider Identomat.
During the 2024 to 2025 tax year, 280 investors paid a combined £3.5 million. The number of settlements declined to 222 in 2025 to 2026, although their total value increased to roughly £4.8 million. The average settlement across the two years was about £16,600.
The settlements followed the launch of HMRC’s crypto disclosure campaign in November 2023, which allows investors to report unpaid taxes linked to exchange tokens, utility tokens, and nonfungible tokens. HMRC has also increased the number of warning letters sent to people it suspects may have failed to report taxable crypto activity.
Separate data showed that HMRC issued 101,024 crypto related warning letters between 2020 and 2025. Nearly 65,000 were sent during the 2024 to 2025 tax year, compared with 27,712 one year earlier.
Crypto sales, swaps, purchases, and certain transfers can trigger capital gains tax obligations in the UK. Crypto received through employment or mining may instead be subject to income tax and National Insurance contributions.
HMRC warned that people who fail to pay taxes owed on crypto could face penalties of up to 100% of the unpaid amount plus interest. Penalties involving offshore transactions may be higher.
The crackdown is expected to intensify under the Cryptoasset Reporting Framework, which took effect in the UK on Jan. 1. The rules require crypto service providers to collect information about users, transactions, and tax residency before reporting the data to HMRC. Information involving foreign users will also be exchanged with participating tax authorities.
HMRC said the settlement figures do not represent the full scope of its crypto enforcement activity, which also includes tax inquiries, data analysis, and targeted compliance campaigns.