What Are the New HMRC Crypto Tax Rules for 2026?
Whether you’re a casual investor or a serious trader, these changes are significant. In this article, Plan A Financials explains what the new HMRC crypto tax rules in 2026 mean for you — and how to stay compliant.
The UK government is increasing oversight of cryptocurrency investments. Starting 1 January 2026, new regulations under the OECD’s Cryptoasset Reporting Framework (CARF) will give HMRC direct access to personal and transactional data from crypto platforms. This move aims to close tax gaps and ensure crypto income and gains are accurately reported.
What Is the Cryptoasset Reporting Framework (CARF)?
CARF is a global initiative developed by the Organisation for Economic Co-operation and Development (OECD) to enhance transparency and combat crypto-related tax evasion. Similar to international financial account reporting, it mandates crypto platforms to collect and share data with tax authorities — in this case, HMRC.
By 2026, the UK will begin enforcing CARF, joining more than 50 other countries in implementing a consistent reporting framework.
What Will Crypto Platforms Be Required to Report?
Under CARF, UK-based crypto service providers will be legally required to collect and share key user data with HMRC. This includes:
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Full name, date of birth, and residential address
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Tax residency and National Insurance number or taxpayer reference
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A comprehensive record of every transaction, including:
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Type of cryptoasset
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Number of units
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Value of each transaction
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Type of transaction (buy, sell, swap, stake, etc.)
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Failure to comply could result in fines of £300 per user — motivating platforms to enforce these requirements strictly.
Earlier Enforcement: Self-Assessment Crypto Disclosure (2024–25)
While CARF begins in 2026, changes to crypto tax reporting start much earlier.
From the 2024–25 tax year, individuals must report crypto-related income and gains in a dedicated section of their Self Assessment tax return. You’ll need to disclose:
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Profits from selling or exchanging crypto (subject to Capital Gains Tax)
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Income from mining, staking, lending, or being paid in crypto (subject to Income Tax and possibly National Insurance)
Even minor crypto activity must now be documented properly. Non-compliance could lead to a £300 penalty, plus interest and potential backdated assessments.
Who Will Be Affected?
The new HMRC rules affect anyone involved with crypto, including:
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Private investors
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Traders and speculators
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Employees or freelancers paid in crypto
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Crypto miners and stakers
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Individuals using DeFi platforms
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Businesses accepting crypto as payment
Even casual users or hobbyist investors are expected to maintain clear, auditable records and disclose gains and income correctly.
Why the Crackdown?
UK crypto ownership continues to grow. According to the Financial Conduct Authority (FCA), around 7 million people in the UK — roughly 12% of the adult population — now hold some form of cryptoasset.
This surge in adoption is coupled with sharp market movements. For example, Bitcoin surged from £38,000 in August 2024 to £86,000 in January 2025, with current prices hovering near £85,000. The resulting capital gains have caught HMRC’s attention — and they’re moving swiftly to ensure no taxable profits go undeclared.
HMRC projects that CARF could help recover £315 million in unpaid crypto taxes by 2030, enough to fund over 10,000 new NHS nurses for a year.
The UK Leads the Way in Global Crypto Tax Enforcement
The UK is part of the first wave of 52 countries implementing CARF by 2027, including:
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All EU member states
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Jersey, Guernsey, Isle of Man
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South Africa, Uganda
By 2028, countries like the United States, Singapore, UAE, Hong Kong, and Turkey will also join the data-sharing initiative.
However, some countries — including India, Vietnam, and Australia — have yet to commit to CARF. Despite this, the trend is clear: global crypto regulation is tightening.
How Crypto Investors Should Prepare
As crypto moves into the regulatory mainstream, the time to act is now. Here are four steps you should take immediately:
✅ 1. Track Your Transactions
Keep a detailed log of every crypto transaction, including:
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Purchase/sale dates
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Asset type and quantity
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Wallet addresses
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Exchange rates
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Associated fees
Using crypto accounting tools or working with a tax professional can make this much easier.
✅ 2. Understand Capital Gains & Income Tax Rules
Most disposals of crypto (selling, swapping, gifting, or spending) are subject to Capital Gains Tax. However, some types of crypto income — such as mining or staking — may fall under Income Tax rules. Proper classification is essential.
✅ 3. Review Past Activity
If you’ve traded or earned crypto in previous years and not reported it, consider reviewing and amending your past Self Assessment returns.
✅ 4. Consider Voluntary Disclosure
HMRC currently offers a Cryptoasset Disclosure Service (CDS) that allows individuals to voluntarily declare previously unreported gains. This may reduce penalties — but it’s essential to seek professional advice before proceeding.
The End of Crypto Anonymity — At Least for Tax
For years, many viewed crypto as a grey area for tax. That era is ending.
CARF and HMRC’s new enforcement powers signal a major shift in the UK tax landscape. Once these rules are fully in place, tax authorities will no longer need to request crypto data — they’ll already have it. This means:
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Higher risk of audits for non-reporting
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Less leniency for accidental errors
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Greater pressure on platforms to verify users and report accurately
How Plan A Financials Can Help
Navigating crypto taxation is complex, and the risks of getting it wrong are increasing. At Plan A Financials, we specialise in helping individuals and businesses:
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Calculate and report crypto capital gains
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Declare income from staking, mining, and payments
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Prepare for CARF and comply with HMRC crypto rules
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Use the Cryptoasset Disclosure Service appropriately
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Keep detailed and compliant records
Whether you’re new to crypto or managing a large portfolio, we provide tailored guidance to keep you compliant and confident.
✅ Get Expert Support Today
Don’t wait until HMRC knocks. Be proactive about your crypto tax obligations with expert help from Plan A Financials.
📞 Call us at: 01277 236 246
✉️ Email: info@plan-a.co.uk
🌐 Visit: www.plan-a.co.uk