HMRC sends 81,000 warning letters to crypto investors

The UK tax authority sent more than 81,000 warning letters to cryptocurrency investors during the 2025-26 financial year, a sharp increase as it intensifies efforts to identify unpaid taxes from the recent crypto boom. The figures, revealed through a Freedom of Information request, show the number of communications from HM Revenue and Customs (HMRC) has nearly tripled from 27,714 in the 2023-24 financial year.

HMRC believes a significant amount of capital gains tax remains unpaid from the period when cryptocurrency values surged. Between December 2022 and October 2025, the price of Bitcoin rose from approximately £14,000 to a peak of around £90,000. The tax authority's "nudge" letters, which can be delivered by post, email, or text, are intended to remind investors of their obligations and encourage them to review their tax affairs before formal investigations begin.

The letters clarify that tax may be due not only when crypto is sold for traditional currency, but also in certain circumstances when one cryptocurrency is exchanged for another, or when crypto is used to purchase goods. Investors who fail to declare profits could face penalties of up to 100% of the owed tax, plus...