UK Crypto Tax 2026: What HMRC’s new reporting rules mean for crypto holders
If you hold or trade cryptocurrency, a major change has been in effect since January 2026 that you need to be aware of.
In June 2025, HMRC announced new regulations that will significantly increase its visibility over crypto transactions in the UK. For the first time, crypto platforms such as exchanges, wallet providers and brokers will be required to collect detailed user information and report transaction data directly to HMRC.
In simple terms, HMRC will soon be able to see much more of what’s happening on crypto platforms. While the tax rules themselves are not changing, enforcement is about to become much stricter.
What’s changing from January 2026?
From 1 January 2026, crypto service providers operating in the UK will be required to collect and report certain information about their users and transactions.
This includes:
- Full name
- Address
- Date of birth
- Tax residence
- National Insurance number or Unique Taxpayer Reference (UTR)
- A summary of crypto transactions, including sales, transfers and exchanges
This information will be reported directly to HMRC, meaning tax authorities will have access to transaction-level data across major crypto platforms.
The rules align with the OECD’s Crypto-Asset Reporting Framework (CARF), which is part of a global effort to improve transparency around digital assets. In other words, this isn’t just a UK initiative, many countries are introducing similar reporting requirements.
The tax treatment hasn’t changed, but the enforcement has
Under the new rules, both users and crypto platforms are required to provide accurate information. If incorrect or incomplete details are provided, there can be penalties of up to £300 per user. This applies both to the individual using the platform and to the service provider submitting the information.
However, the larger risk arises if HMRC uses this data to identify underreported gains or undeclared income.
If that happens, HMRC can pursue backdated tax, interest on the unpaid amount, and additional penalties. Depending on the circumstances, these amounts can be significantly higher than the initial £300 reporting penalty.
What HMRC expects this to achieve
The government estimates that these regulations will generate an additional £315 million in tax revenue by April 2030.
HMRC has already identified around 50 UK-based crypto service providers that will fall within the reporting rules. The compliance costs for those platforms are expected to be significant, with estimates suggesting around £800,000 per year to meet the new reporting requirements.
HMRC is also investing heavily in the infrastructure needed to support this system, with around £69 million being spent on implementation, much of it focused on technology and data systems.
Put simply, this level of investment reflects HMRC’s expectation that increased transparency will uncover a significant amount of previously undeclared crypto activity.
What you should do now
If you have been involved with crypto at any point and are unsure whether it has been reported correctly on previous tax returns, it is worth addressing that before HMRC begins receiving transaction data from platforms in 2026.
HMRC offers a Cryptoasset Disclosure Service, which allows individuals to correct previous reporting issues voluntarily. Coming forward before HMRC has full transaction-level visibility may help reduce potential penalties.
If you are currently trading, investing or holding crypto, it is also important to keep detailed records of every transaction. This should include the purchase price, sale price, dates, fees and transfers between wallets. When HMRC begins cross-checking platform data against tax returns, you will need to be able to support the figures you report.
If you are earning crypto as income, such as through staking rewards, mining activity, or being paid in crypto for work or brand collaborations, this may need to be treated as income for tax purposes and reported accordingly.
More broadly, this reflects a wider trend we are seeing across the digital economy. Tax authorities are becoming far more effective at tracking digital income streams, whether that is crypto activity, creator platform earnings or cross-border payments.
Need advice on crypto tax?
If you hold cryptocurrency and want to make sure your tax affairs are compliant, it’s worth getting professional advice, particularly if you have traded frequently, received crypto as income, or operate internationally.
At StarBox, we work with digital entrepreneurs, creators and online businesses to help them manage their tax obligations confidently. If you’d like to discuss your crypto position or review your past reporting, get in touch with the StarBox team.