The UK’s tax authority, HM Revenue & Customs (HMRC), has significantly intensified its efforts to ensure crypto investors comply with reporting requirements. During the 2024–25 tax year, HMRC issued nearly 65,000 reminder letters to remind individuals of their obligations to report any undeclared capital gains from cryptocurrency transactions. This number represents a substantial increase compared to the previous year’s 27,700 reminders, reaching over 100,000 letters in total over the past four years. These letters serve as a reminder for investors to rectify any unreported profits from trading cryptocurrencies.
HMRC’s efforts utilize transaction data provided by UK cryptocurrency exchanges to identify discrepancies in reported capital gains taxes. Any sale or exchange of cryptocurrencies constitutes a taxable event under capital gains tax laws.