HMRC Crypto Tax Letters

Key points

• HMRC sent 64,982 nudge letters in 2024/25 to people whose crypto activity may not match what they declared.
• A nudge letter is not automatically a tax bill-it is a warning that HMRC believes something could be missing.
• And tax does not only become relevant when you withdraw pounds. Selling crypto, swapping one token for another, spending it or giving it away can all be disposals for Capital Gains Tax purposes.
• For 2026/27, the annual CGT exemption is only £3,000. Taxable gains above the available exemption are generally charged at 18% or 24%, depending on your taxable income and gains.
• HMRC’s access to crypto information is getting stronger, while new reporting rules require crypto providers to collect more user and transaction data.