HMRC is becoming increasingly active with over 65,000 nudge letters having been sent out to suspected crypto investors in 2025. In 2024, 27,700 letters were sent out.  This is in advance of the new reporting obligations for cryptoasset service providers which come into force from 1 January 2026 with the first deadline for filing of reports being 31 May 2027 covering all of the 2026 activity.

What is becoming readily apparent is that many fringe investors do not understand the UK tax effects of investing in crypto so this article provides a brief framework for investors and their advisors to consider whether they are caught in the UK tax net.