Britain's tax authority, HMRC, has collected £3.5 million through its Cryptoasset Disclosure Facility, with 280 settlements made as of now. Of these settlements, 222 were made during the 2025/26 fiscal year alone, indicating an acceleration in voluntary confessions. HMRC has issued over 65,000 "nudge letters" during the 2024-25 tax year, nearly doubling the volume from the prior year, in an effort to encourage compliance. The agency estimates that non-compliance among UK crypto holders sits between 55% and 95%, meaning more than half of crypto investors in Britain aren't properly reporting their gains.
Mandatory Reporting Rules
Starting in January 2026, the Crypto-Asset Reporting Framework (CARF) will require crypto service providers to report user data directly to HMRC. This framework involves the UK and 48 other nations working together, making it difficult for users to avoid reporting requirements by moving to an overseas exchange.
Penalties and Projections
HMRC has set penalties of up to £300 for users who don't comply with the new reporting obligations. The agency projects that its intensified enforcement strategy will generate at least £300 million in additional tax revenue over the next five years, with the £3.5 million collected so far being a fraction of this target.
Based on reporting from cryptobriefing.com.