CoinPaprika
Oct 18, 2025
5 0

HMRC Sends 65,000 Nudge Letters to Crypto Investors

HM Revenue & Customs (HMRC) has significantly increased its scrutiny of crypto investors, sending nearly 65,000 nudge letters in the 2024–25 tax year to encourage disclosure of undeclared capital gains from crypto transactions. This is more than double the number sent in the previous year.

Exchange Data Utilization

  • HMRC uses transaction data from UK crypto exchanges to identify discrepancies.
  • Coin disposals, including swaps, are considered taxable events under capital gains rules.
  • From 2026, the OECD’s Crypto-Assets Reporting Framework will enhance global data exchange, aiding HMRC’s oversight.

Increased Crypto Adoption

  • The Financial Conduct Authority reports that seven million UK adults now hold crypto, up from five million in 2022.
  • Complex tax regulations can lead to unintentional non-compliance among investors.

Nudge Letters and Compliance

  • Investors have 60 days to respond or disclose through HMRC’s Cryptoasset Disclosure Facility.
  • Non-compliance may lead to formal investigations and penalties for late payments on undeclared gains.