Cryptocurrency holders warned after Budget 2025 reiterates that crypto platforms will start recording the gains made on these assets on 1st January 2026, ahead of sharing it with HMRC.
Anyone who buys or sells cryptocurrency is being urged to get their tax affairs in order, after the Government confirmed in Budget 2025 that HMRC will soon start receiving detailed financial information directly from crypto platforms.
From 1st January 2026, major cryptocurrency exchanges will be required to collect full transaction records for their UK customers – including how much they paid, how much they sold for and any profits made.
This is part of the government’s wider clampdown on tax avoidance. With these platforms to become responsible for recording and, in time, sharing the financial information of crypto holders with HMRC, the tax office will have visibility of the amount of tax that should be paid.
From 2027, these platforms will begin sending this information straight to HMRC, giving the tax authority a clear view of people’s gains for the first time.
Experts are warning that anyone trading in digital assets – from Bitcoin and Ethereum to smaller tokens – must make sure they are accurately reporting their profits on their self-assessment tax returns. HMRC will use the new data to crack down on undeclared gains.
Seb Maley, CEO of tax insurance provider, Qdos, said, “This marks a major shift in how crypto trading is monitored from a tax perspective. HMRC will soon know exactly who is making gains – and how much.
“Anyone who holds or trades cryptocurrency must ensure they are reporting the gains on their self-assessment tax return. HMRC is set to have more information and data at its fingertips than ever before.
“With platforms set to keep a record of this information from 1st January 2026, ahead of sharing it with HMRC the year after, the tax office will be able to cross-check tax returns against the data they’ve received.
“And it goes without saying, that HMRC will have no hesitation in launching an investigation if the numbers don’t match.”
Background
These measures form part of the UK’s commitment to a new global agreement – the Crypto-Asset Reporting Framework (CARF) – designed to bring greater transparency to the fast-growing digital asset market.
