From January 2026, investors will need to comply with new reporting requirements for purchasing, selling, transferring, or exchanging crypto assets. This will help HMRC link crypto activity to tax records.
According to the latest figures, in the UK, around 7 million people own a crypto asset – such as Bitcoin, which has seen a significant increase in value in the last year.
If you’re a crypto investor or intend to become one soon, here’s what you should know about tax on crypto assets in the UK and what you must do to report your crypto activity to HMRC.
When are crypto assets liable for Capital Gains Tax?
Generally, ‘chargeable assets’ that will become liable for Capital Gains Tax (CGT) on disposal include possessions worth over £6,000, properties, and non-ISA shares.
Crypto assets are treated similarly to shares, meaning each type is pooled.
It will therefore be considered a disposal for CGT purposes if you:
- Sell a crypto asset (even if you don’t withdraw the proceeds)
- Exchange a crypto asset for a different type of crypto asset
- Use crypto assets as payment for goods or services
- Gift crypto assets to someone else (other than a spouse or civil partner)
Simply moving crypto assets between different wallets is not considered a disposal. However, a transaction using a crypto debit card or a cryptocurrency conversion will be.
Crypto asset reporting requirements
Investors will need to give their name, date of birth, address, and either a Unique Tax Reference (UTR) or National Insurance number to their crypto service providers.
Failing to disclose this information, or submitting an incorrect report, will result in a £300 fine.
Some investors may use crypto asset service providers based outside of the UK, but this won’t avoid the reporting requirements if the country the provider is based in follows the same rules.
However, there are several countries hosting crypto providers that haven’t signed up to these requirements yet, and using a decentralised exchange could also bypass them.
Non-voluntary disclosure to HMRC
Previously, HMRC relied on individuals making voluntary disclosures for crypto assets, but this led to high levels of non-compliance, contributing to the growing UK tax gap.
Crypto asset service providers will now report their collected data to HMRC, with the first reports for 2026 due by May 2027. HMRC can then check whether individuals have accurately reported disposals.
From 2024–2025 onwards, self-assessment tax returns now include a specific section within the CGT pages for individuals to report any gains from crypto asset disposals.
Further guidance on crypto asset reporting requirements is available on the government website.
Need help with tax management?
Failure to declare income and gains to HMRC and pay any tax owed can result in significant financial penalties, so it’s essential to make sure you’re doing it right.
It can be confusing to keep up with evolving tax rules for newer asset types, but if you want to cover all your bases, it’s a good idea to consult a professional tax adviser.
Here at gbac, we have a team of experienced accountants in Barnsley who can assist you with all areas of tax planning, ensuring you make the most of your tax allowances and remain fully compliant.
For a consultation on crypto asset tax management, call us on 01226 298 298 or email info@gbac.co.uk.