HMRC recovered £8.3M from 502 crypto investors through voluntary disclosures. With CARF data-sharing and 65,000 nudge letters, UK tax compliance is tightening. Projected £315M revenue by 2030.
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The UK tax authority has recovered more than £8.3 million from crypto investors through voluntary tax settlements, as HMRC ramps up enforcement ahead of automatic data-sharing rules.
According to the Financial Times, 502 investors used HMRC's Cryptoasset Disclosure Facility to report unpaid crypto taxes before facing a formal investigation. The settlements generated roughly £3.5 million in the 2024/25 tax year from 280 individuals, and another £4.8 million from 222 investors in 2025/26.
The disclosure facility, introduced in late 2023, lets taxpayers correct past reporting errors voluntarily. Penalties are typically lower than in cases resolved through formal enforcement.
Tax advisers said the figures likely represent a small fraction of investors with undeclared crypto gains. Many remain unaware that selling digital assets, exchanging one crypto for another, or certain NFT transactions can trigger capital gains tax.
HMRC has also stepped up compliance activity directly. It issued nearly 65,000 "nudge letters" during the 2024/25 tax year – a roughly 680% increase from earlier levels. The letters urge taxpayers to review their crypto transactions and correct any errors before further action.
The agency has widened its scrutiny to include digital assets disclosed through inheritance tax filings.
HMRC's enforcement capabilities will grow further under the Crypto-Asset Reporting Framework (CARF). Since Jan. 1, 2026, UK-based crypto service providers must collect customer identification, tax residency, and transaction data for automatic exchange with participating jurisdictions. That makes it harder to conceal crypto held on overseas platforms.
HMRC has also added dedicated crypto reporting to the UK's Self Assessment system, allowing declared gains to be cross-checked against data from exchanges.
The Treasury projects crypto taxation could generate £315 million in annual revenue by 2030, based on an estimated 7 million UK crypto holders.
The combination of voluntary disclosure programs, automated international reporting, and higher compliance activity is narrowing the scope for undeclared gains. Investors who have not yet regularized past filings face increasing risk as enforcement intensifies.
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