UK Taxman Sends 81,000 Crypto Warning Letters, Targets Bull Run Gains

HM Revenue and Customs sent more than 81,000 warning letters to UK crypto holders in the 2025-26 financial year, nearly three times the 27,714 letters dispatched in 2024. The tax authority believes a large share of the unpaid tax relates to gains made during the crypto bull run between 2022 and 2025.

The letters were sent to holders HMRC suspects may have unpaid tax. The agency reminded recipients that tax obligations can arise when crypto is sold, given away, exchanged, or used to make purchases. Failure to pay can result in penalties of up to 100% of the tax owed, plus interest. Offshore transfers carry potentially greater consequences.

The BBC reported the figures after reviewing a freedom of information request.

Neela Chauhan, a partner at accounting firm UHY Hacker Young, told the BBC that many traders are young and have had little previous experience dealing with HMRC. Some operate on the assumption that the agency has limited visibility into their crypto activity, she said. Identifying unpaid liabilities among wealthy holders could become considerably easier once new HMRC powers take effect in 2027.