UK HMRC sent 81,000 tax warning letters to crypto investors over the past year

The UK’s tax authority, HM Revenue & Customs (HMRC), sent 81,000 warning letters over the past 12 months to crypto investors suspected of underpaying tax, up 25% from roughly 65,000 a year earlier, according to ChainCatcher. The letters are meant to prompt recipients to disclose unpaid liabilities before HMRC moves to a formal investigation. The report says several common crypto activities may trigger taxable disposal treatment in the UK, including exchanging cryptocurrencies, using tokens to buy goods or services, and gifting tokens to another person. Income generated from activities such as lending and staking may also fall under income tax rules. UK residents are generally taxed on relevant income and gains arising worldwide. ChainCatcher also noted that rules scheduled for implementation in April 2027 will apply no-gain, no-loss treatment to eligible crypto lending and automated market maker arrangements until an economic disposal occurs, a change expected to affect about 700,000 people. Separately, the Crypto-Asset Reporting Framework will require service providers to submit 2026 transaction data during a reporting window running from Jan. 1 to May 31, 2027. An estimated 52 jurisdictions are expected to exchange related data in 2027, with another 15 set to join in 2028.