HMRC targets less than 1% of crypto investors

HMRC contacted less than 1% of UK cryptocurrency investors about their potential capital gains tax liability last year

A Freedom of Information (FOI) request from wealth management firm Quilter revealed that the tax authority sent out 8,329 letters to crypto investors about potential capital gains tax (CGT) bills in 2021.

However, based on the estimate from the Financial Conduct Authority (FCA) last year that there a 2.3m British crypto investors in the UK, HMRC’s figure only represents 0.4% of crypto owners.

In October 2021, HMRC announced that it would start sending nudge letters to crypto investors to warn them that capital gains tax is owed on crypto profits.

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