HMRC sets its sights on tax liabilities from crypto asset transactions

In a recent one-to-many campaign, HMRC is urging taxpayers to check they have paid the correct amount of tax on crypto asset transactions. 

Conducted by the Wealthy and Mid-sized Business Compliance team, individuals suspected of having underpaid tax on crypto assets will be contacted by HMRC. 

Communications will be issued between July 2026 and March 2027, taking the form of letters, emails, text messages and potentially HMRC app messages.  

This campaign forms part of a wider HMRC crackdown on crypto assets, with 81,000 warning and nudge communications to investors issued in 2025-26. 

What does it mean if you’ve been contacted?  

The communication will explain the scenarios where crypto asset transactions may result in taxable income or chargeable gains. 

While many people may assume that tax applies only when a cryptocurrency is exchanged to pounds, there are other transactions that can trigger liabilities. 

For example, swapping one token for another usually counts as a disposal for CGT, even if the asset never touches a bank account. Similarly, using digital assets to buy goods or services is treated as a disposal. 

As misconceptions may mean an investor has years of taxable gains without realising, HMRC’s campaign is aimed at reinforcing understanding.  

If you have gains to report, you could: 

• Alter your Self-Assessment tax return for the year in question 

• Specify gains using HMRC’s disclosure service if it is too late to amend a Self-Assessment 

What tax Is payable? 

We’ve put a few articles on our website about the tax consequences of crypto transactions, which you can find here: https://www.intaxltd.com/the-pitfalls-of-crypto-assets-tax-considerations/ 

For most crypto investors, if a profit is made on a crypto investment, HMRC is likely to consider it as a capital gain.  

At the time of writing, the first £3,000 of capital gains in a tax year is tax-free. Where there are frequent transactions, or transactions close together, the calculation of the capital gain can become increasingly complex. 

In some circumstances, significant numbers of crypto transactions might be treated as a trade and therefore income tax would be payable on the profit.  

Also, if you have been paid for your services via crypto, that would normally be subject to income tax. 

Not received a letter?  

While not receiving a letter can be a positive sign, you may still want to review your tax position and check for any undisclosed liabilities.  

HMRC’s Crypto-Asset Reporting Framework, rolled out on 1 January 2026, requires regulated crypto asset providers to collect and report transaction data. 

Under this framework, individuals who trade crypto assets may face HMRC scrutiny, particularly where gains are underreported. 

The first reports are due to HMRC by 31 May 2027, so not receiving a letter immediately doesn’t necessarily mean you are in the clear. 

What should you do next? 

Receiving a communication from HMRC regarding your crypto assets is not always an accusation of wrongdoing, but it isn’t something that should be ignored. 

While you may have no gains to report and no action needs to be taken, previous one-to-many campaigns required a response, even if it was to confirm no tax was due. 

If you wish to amend a Self-Assessment return, you typically have 12 months from the Self-Assessment filing deadline to do so 

Recent Self-Assessment forms have featured sections dedicated to gains and losses on crypto assets, which is where transactions should be reported. 

For older or more careless errors, HMRC’s Digital Disclosure Service is an alternative route. After the taxpayer notifies HMRC, there is 90 days to make the full disclosure and pay the tax owed. 

Speak to a tax investigation specialist 

As HMRC calculates penalties based on the taxpayer’s behaviour and whether a disclosure was prompted, it is important to respond quickly and decisively to a nudge letter. 

The line between behaviour being deliberate and careless can often be blurred, but which side of it you occupy can drastically change the severity of a penalty. 

At inTax, our specialists can handle the correspondence with HMRC on your behalf and calculate the tax you owe. 

If a disclosure is needed, we can help you present your position proactively and clearly, minimising any potential penalties. 

Every HMRC intervention requires a considered response to protect your assets, challenging unfair penalties and assessments where necessary.  

Nudge letters do not imply you’ve done anything wrong, but how a response is framed can make the difference between a minor amendment and a significant penalty.