The post UK Crypto Investors May Still Owe Taxes Despite No HMRC Warning Letter appeared on BitcoinEthereumNews.com. UK crypto investors could face tax bills even if they haven’t received warning letters from HM Revenue & Customs (HMRC), as the agency steps up efforts to track undeclared digital asset income. Last week, the Financial Times revealed that HMRC issued nearly 65,000 “nudge letters” in the 2024–25 tax year, more than double the number sent the year before. The letters urge investors to review their filings and voluntarily declare crypto-related gains before potential audits begin. However, tax experts warn that the agency’s growing use of exchange data and international reporting agreements means that investors who haven’t received a letter shouldn’t assume they’re in the clear. “Not reporting cryptocurrency transactions to HMRC is illegal, regardless of whether you’ve been contacted yet,” Andrew Duca, founder of the crypto tax platform Awaken Tax, told Cointelegraph. “So even if you haven’t received a warning letter, the fact that HMRC has issued so many this year should serve as a wake-up call,” he added. Duca noted that HMRC typically identifies noncompliance by comparing bank records, exchange data, and self-assessment forms. Discrepancies, such as undeclared deposits or transfers, can trigger letters or formal investigations. Higher earners and investors with large onchain portfolios are especially likely to be targeted as data sharing between exchanges and regulators increases, he said. Example of a previous nudge letter sent in 2024. Source: kc-usercontent Related: How to file crypto taxes in 2025 (US, UK, Germany guide) HMRC tightens crypto oversight Exchanges operating in the UK and those serving UK customers abroad are legally required to provide transaction data to HMRC. With the OECD’s Crypto-Asset Reporting Framework (CARF) set to take effect in 2026, the agency will gain automatic access to information from global trading platforms. “It’s far better to be proactive and report on your activity now, rather than wait for HMRC… The post UK Crypto Investors May Still Owe Taxes Despite No HMRC Warning Letter appeared on BitcoinEthereumNews.com. UK crypto investors could face tax bills even if they haven’t received warning letters from HM Revenue & Customs (HMRC), as the agency steps up efforts to track undeclared digital asset income. Last week, the Financial Times revealed that HMRC issued nearly 65,000 “nudge letters” in the 2024–25 tax year, more than double the number sent the year before. The letters urge investors to review their filings and voluntarily declare crypto-related gains before potential audits begin. However, tax experts warn that the agency’s growing use of exchange data and international reporting agreements means that investors who haven’t received a letter shouldn’t assume they’re in the clear. “Not reporting cryptocurrency transactions to HMRC is illegal, regardless of whether you’ve been contacted yet,” Andrew Duca, founder of the crypto tax platform Awaken Tax, told Cointelegraph. “So even if you haven’t received a warning letter, the fact that HMRC has issued so many this year should serve as a wake-up call,” he added. Duca noted that HMRC typically identifies noncompliance by comparing bank records, exchange data, and self-assessment forms. Discrepancies, such as undeclared deposits or transfers, can trigger letters or formal investigations. Higher earners and investors with large onchain portfolios are especially likely to be targeted as data sharing between exchanges and regulators increases, he said. Example of a previous nudge letter sent in 2024. Source: kc-usercontent Related: How to file crypto taxes in 2025 (US, UK, Germany guide) HMRC tightens crypto oversight Exchanges operating in the UK and those serving UK customers abroad are legally required to provide transaction data to HMRC. With the OECD’s Crypto-Asset Reporting Framework (CARF) set to take effect in 2026, the agency will gain automatic access to information from global trading platforms. “It’s far better to be proactive and report on your activity now, rather than wait for HMRC…

UK Crypto Investors May Still Owe Taxes Despite No HMRC Warning Letter

UK crypto investors could face tax bills even if they haven’t received warning letters from HM Revenue & Customs (HMRC), as the agency steps up efforts to track undeclared digital asset income.

Last week, the Financial Times revealed that HMRC issued nearly 65,000 “nudge letters” in the 2024–25 tax year, more than double the number sent the year before. The letters urge investors to review their filings and voluntarily declare crypto-related gains before potential audits begin.

However, tax experts warn that the agency’s growing use of exchange data and international reporting agreements means that investors who haven’t received a letter shouldn’t assume they’re in the clear.

“Not reporting cryptocurrency transactions to HMRC is illegal, regardless of whether you’ve been contacted yet,” Andrew Duca, founder of the crypto tax platform Awaken Tax, told Cointelegraph. “So even if you haven’t received a warning letter, the fact that HMRC has issued so many this year should serve as a wake-up call,” he added.

Duca noted that HMRC typically identifies noncompliance by comparing bank records, exchange data, and self-assessment forms. Discrepancies, such as undeclared deposits or transfers, can trigger letters or formal investigations.

Higher earners and investors with large onchain portfolios are especially likely to be targeted as data sharing between exchanges and regulators increases, he said.

Example of a previous nudge letter sent in 2024. Source: kc-usercontent

Related: How to file crypto taxes in 2025 (US, UK, Germany guide)

HMRC tightens crypto oversight

Exchanges operating in the UK and those serving UK customers abroad are legally required to provide transaction data to HMRC. With the OECD’s Crypto-Asset Reporting Framework (CARF) set to take effect in 2026, the agency will gain automatic access to information from global trading platforms.

“It’s far better to be proactive and report on your activity now, rather than wait for HMRC to pull you up on it,” Duca said.

He noted that crypto activity becomes taxable not only when digital assets are converted to pounds, but also when they’re swapped between tokens or generate income through staking, airdrops, or yield farming. Only purchases made with fiat currency or transfers between personal wallets are exempt.

To calculate gains, HMRC applies a three-tier “spooling” method. This includes assessing same-day trades first, then transactions within a 30-day window, and finally using an average cost for older purchases. For active traders, this process can become highly complex, and Duca recommends using specialist tax software designed for crypto reporting.

Related: New York State senator proposes tax on crypto mining energy use

What to do if contacted

Duca said investors who receive an HMRC letter are best advised to seek professional advice immediately. Specialist accountants can help prepare accurate transaction reports and negotiate with the tax office if underpayment is discovered. Failure to respond may lead to penalties or further investigation.

“Using crypto tax software will also help you to generate accurate reports of all your activity as accurately and efficiently as possible,” Duca said. “Lastly, you need to be prepared to pay. If you owe taxes, you’ll need to settle them.”

Duca added that decentralized exchanges (DEXs) and cold wallets are not exempt from HMRC reporting requirements. “You are legally required to report on all DEX transactions, cold wallet activity and hot wallet transfers,” he said.

Meanwhile, in the US, senators are exploring updates to crypto tax policy, including exempting small transactions from taxation and clarifying how staking rewards are treated.

During a Senate Finance Committee hearing earlier this month, lawmakers debated whether everyday crypto payments should trigger capital gains tax and how to fairly classify income generated from staking services. Coinbase’s vice president of tax, Lawrence Zlatkin, urged Congress to adopt a de minimis exemption for crypto transactions under $300.

Magazine: Back to Ethereum — How Synthetix, Ronin and Celo saw the light

Source: https://cointelegraph.com/news/uk-crypto-investors-tax-hmrc-warning-letters-2025?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound

Market Opportunity
Threshold Logo
Threshold Price(T)
$0.006784
$0.006784$0.006784
-1.25%
USD
Threshold (T) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Cashing In On University Patents Means Giving Up On Our Innovation Future

Cashing In On University Patents Means Giving Up On Our Innovation Future

The post Cashing In On University Patents Means Giving Up On Our Innovation Future appeared on BitcoinEthereumNews.com. “It’s a raid on American innovation that would deliver pennies to the Treasury while kneecapping the very engine of our economic and medical progress,” writes Pipes. Getty Images Washington is addicted to taxing success. Now, Commerce Secretary Howard Lutnick is floating a plan to skim half the patent earnings from inventions developed at universities with federal funding. It’s being sold as a way to shore up programs like Social Security. In reality, it’s a raid on American innovation that would deliver pennies to the Treasury while kneecapping the very engine of our economic and medical progress. Yes, taxpayer dollars support early-stage research. But the real payoff comes later—in the jobs created, cures discovered, and industries launched when universities and private industry turn those discoveries into real products. By comparison, the sums at stake in patent licensing are trivial. Universities collectively earn only about $3.6 billion annually in patent income—less than the federal government spends on Social Security in a single day. Even confiscating half would barely register against a $6 trillion federal budget. And yet the damage from such a policy would be anything but trivial. The true return on taxpayer investment isn’t in licensing checks sent to Washington, but in the downstream economic activity that federally supported research unleashes. Thanks to the bipartisan Bayh-Dole Act of 1980, universities and private industry have powerful incentives to translate early-stage discoveries into real-world products. Before Bayh-Dole, the government hoarded patents from federally funded research, and fewer than 5% were ever licensed. Once universities could own and license their own inventions, innovation exploded. The result has been one of the best returns on investment in government history. Since 1996, university research has added nearly $2 trillion to U.S. industrial output, supported 6.5 million jobs, and launched more than 19,000 startups. Those companies pay…
Share
BitcoinEthereumNews2025/09/18 03:26
VIRTUAL Bearish Analysis Feb 10

VIRTUAL Bearish Analysis Feb 10

The post VIRTUAL Bearish Analysis Feb 10 appeared on BitcoinEthereumNews.com. VIRTUAL is approaching a critical support test at the 0.55$ level, with RSI at 33
Share
BitcoinEthereumNews2026/02/10 15:15
XRPL Developer Says 100% Taking Profits on XRP at $10, $27

XRPL Developer Says 100% Taking Profits on XRP at $10, $27

An XRPL developer has stirred discussion around profit-taking levels well above today’s price, prompting mixed reactions from XRP holders who favor a never-sell
Share
Coinstats2026/02/10 15:11