HMRC Sent 81,000 Crypto Tax Warning Letters in the Past 12 Months

HM Revenue & Customs (HMRC) sent 81,000 warning letters to cryptocurrency investors suspected of unpaid tax over the past 12 months, a 25% increase from roughly 65,000 the year before. The letters are meant to prompt recipients to disclose unpaid tax before HMRC begins a formal investigation. Under UK rules, crypto swaps, using tokens to buy goods or services, and transferring tokens to another person can all count as taxable disposals. Income from lending and staking may fall under income tax rules, and UK residents are generally required to pay tax on related income and gains worldwide. Rules scheduled for April 2027 will apply no gain, no loss treatment to qualifying crypto lending and automated market-making arrangements until an economic disposal takes place, and are expected to affect about 700,000 people. Under the cryptoasset reporting framework, service providers must submit 2026 transaction data. The reporting period runs from Jan. 1 to May 31, 2027. Data exchanges are expected in 52 jurisdictions in 2027, with 15 more added in 2028. (Bitcoin.com News)