HMRC’s cryptoasset rules are now in effect: What does this mean?

Since 1 January 2026, the way HMRC monitors and taxes cryptoassets has changed significantly.

With the introduction of the Crypto Asset Reporting Framework (CARF), crypto is no longer operating in a grey area and is now treated as a financial asset.

If you or your business buys, sells, transfers, mines, stakes or holds cryptoassets, these new rules will affect you.

What has changed under the new cryptoasset rules?

Under CARF, cryptoasset service providers must now collect and report detailed customer information directly to HMRC.

This applies to providers based in the UK or overseas, as long as they follow the same international reporting standards.

Users of crypto platforms are required to provide:

• Full name
• Date of birth
• Residential or business address
• Tax identification number (National Insurance number or Unique Taxpayer Reference)

This information will be automatically shared with HMRC or the relevant overseas tax authority.

Why have these rules been introduced?

HMRC’s objective is to ensure crypto income and gains are being properly declared and taxed.

This includes:

• Capital Gains Tax on profits from selling or transferring crypto
• Income Tax and National Insurance on crypto received from employment, mining or staking

CARF forms part of a global agreement aimed at preventing tax evasion and crypto will now be subject to the same scrutiny as traditional assets.

How will the changes to the cryptoasset tax rules affect investors?

You must comply with the new rules if you deal with:

• Exchange tokens like Bitcoin or Ethereum
• Non-Fungible Tokens (NFTs)
• Stablecoins
• Utility tokens
• Security tokens

You must ensure every crypto platform you use has accurate and up-to-date personal or business details.

Failing to provide this information or providing misleading details could result in penalties of up to £300 per provider.

HMRC will also have unprecedented access to transaction data, including cross-border activity and this will make it easier for them to spot any undeclared income or gains.

What should you be doing now?

To stay compliant under the new regime, you must act now and not wait until HMRC gets in touch or you are faced with unexpected costs.

You need to:

• Review past crypto activity to check whether any tax is due
• Maintain detailed records of all transactions, including dates, GPB values and any fees paid
• Report crypto correctly in your Self-Assessment, including the new dedicated crypto sections
• Understand taxable events, such as swapping tokens or spending crypto, as this can create CGT liabilities
• Consider voluntary disclosure if you have failed to report crypto in previous years

Voluntary disclosure is always viewed more favourably than waiting for HMRC to raise concerns.

How can we support you?

It can be overwhelming to know what you need to declare, but you must seek financial support now that the rules are already in place.

Our expert team can review your crypto activity and calculate your taxable gains and income accurately.

We can ensure that your Self-Assessment returns are completed correctly with CARF reporting and assist you with voluntary disclosures if necessary.

HMRC is tightening the net around cryptoassets, but with the right guidance, you can be confident that your crypto is compliant.

If you need further advice on your crypto tax obligations, contact us today.