UK Crypto Investors Under Increased HMRC Scrutiny
HM Revenue & Customs (HMRC) is intensifying its efforts to identify undeclared income and gains from digital assets in the UK. Despite a significant increase in "nudge letters" sent to investors, experts warn that the absence of such correspondence does not exempt individuals from tax obligations.
HMRC is cross-referencing bank records, exchange data, and self-assessment forms to identify non-compliance. The upcoming OECD Crypto-Asset Reporting Framework (CARF) will further enhance HMRC's access to global trading data from 2026.
Taxable events include cryptocurrency swaps, staking, airdrops, and yield farming. HMRC uses a complex three-tier method to calculate capital gains. Utilizing crypto tax software and seeking professional guidance is highly recommended for accurate reporting and compliance.
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UK Crypto Investors Face Growing HMRC Tax Scrutiny, Even Without Warning Letters
The landscape for UK crypto investors is becoming increasingly challenging as HM Revenue & Customs (HMRC) escalates its efforts to uncover undeclar...
