UK tax service sent 80K warning letters to crypto holders in last financial year

The UK government sent more than 81,000 warning letters during the 2025/2026 financial year to crypto holders it suspects of owing unpaid taxes.

A freedom of information request seen by the BBC revealed that the volume of letters from HM Revenue and Customs (HMRC) had tripled from 27,714 in 2024.

Unpaid taxes stem from crypto bull run

HMRC believes most of the unpaid taxes stem from gains made during the crypto bull run between 2022 and 2025.

The letters remind UK crypto users that if they sell, give away, exchange or make a purchase with crypto, they may need to pay capital gains tax.

If they don’t pay, they face a possible penalty of up to 100% of their owed tax with interest. This increases when it comes to offshore transfers.

HMRC plans to track wealthy crypto holders with ease

Neela Chauhan, a partner at accounting firm UHY Hacker Young, told the BBC, “A lot of the traders are young, have had little previous exposure to HMRC and often work under the assumption that HMRC has limited visibility over their activities.”

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