Big changes coming to how HMRC sees your crypto
HMRC has announced that it will begin using new international reporting data to to track crypto currency holdings amongst UK taxpayers. The change was announced in a new modernisation document published alongside the 2026 Budget on Wednesday (28 October).
The key change will see HMRC using data from the Crypto-Asset Reporting Framework (CARF) and an enhanced version of the Common Reporting Standard (CRS). This data will improve its visibility of cryptoasset transactions, electronic-money products and indirect cryptoasset holdings, it said.
CARF is an OECD framework under which crypto exchanges and other service providers report their users’ transactions to tax authorities. The CRS already gives HMRC information on around 12 million offshore financial accounts each year from more than 100 countries and territories.
HMRC has established a dedicated Crypto Sector team which it says includes a tailored approach combining customer education, targeted communications, specialist compliance activity, improved use of data and intelligence, and close working across policy and operational teams.
“During 2025 to 2026, Wealthy and Mid Size Business Directorate’s cryptoasset compliance activity delivered over £188 million in compliance yield, including in excess of £168 million from activity designed to help customers get their tax affairs right and prevent non-compliance before it occurs,” it said.
The tax authority said it has also issued more than 180,000 educational communications about crypto tax, and received over 800 disclosures through its Cryptoasset Disclosure Service.
“Cryptoassets present distinct compliance challenges. The market is evolving rapidly, participation is widespread, and some customers may be unfamiliar with their tax obligations,” it said.
People who owe unpaid tax on crypto gains can declare it through HMRC’s Cryptoasset Disclosure Service.
