HM Revenue and Customs (HMRC) has confirmed that it will begin receiving data on cryptoasset holders from January 2027, as part of the UK’s implementation of the Cryptoasset Reporting Framework (CARF). This framework, developed by the Organisation for Economic Co-operation and Development (OECD), establishes an international standard for sharing information on cryptoasset transactions to improve tax compliance.
The UK started adopting CARF in January 2026, requiring cryptoasset service providers to report relevant customer information to tax authorities. The data collected will assist HMRC in identifying undeclared gains and income related to cryptoassets, helping to close the tax gap.
Recent figures released by the Labour Party government reveal that 240 individuals reported more than £1 million in capital gains from cryptoassets during the 2024 to 2025 tax year. Collectively, these individuals accounted for £717 million of cryptoasset gains. Overall, 17,600 taxpayers declared a total of £1.38 billion in taxable capital gains from cryptoassets in that period, with an average gain of approximately £78,000 per individual.
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James Murray MP, Financial Secretary to the Treasury and Paymaster General, emphasised the importance of tax compliance, stating: “Taxes are due on cryptoasset gains just like any other gains, and we want to make sure people making gains from crypto know about what taxes they owe. This important work is supporting the Government’s efforts to close the tax gap, so that everyone pays their fair share towards our vital public services.”
John-Paul Marks, HMRC’s Permanent Secretary and Chief Executive, added: “We want to make it as easy as possible for people to understand and meet their tax obligations when it comes to cryptoassets. As new international reporting rules come into force, it’s more important than ever for people to check they are paying any tax owed.”
Cryptoasset service providers who fail to comply with reporting requirements may face penalties of up to £300 per user. Meanwhile, cryptoasset holders with income or gains to declare can do so through the Crypto Disclosure Service on GOV.UK. It is important that anyone with cryptoasset income or gains exceeding the tax-free allowance for the 2025 to 2026 tax year declares these via their Self Assessment tax return by the deadline of 31 January 2027, and pays any tax due.