Important changes are coming for cryptocurrency holders in the UK. At Jermyn & Co Chartered Accountants, we’re here to help you understand and comply with these new requirements.
Major Changes Taking Effect
From January 2026, the UK will implement tough new cryptocurrency reporting rules as part of the OECD Cryptoasset Reporting Framework (CARF). These regulations represent the most significant change to crypto taxation since HMRC first published guidance on digital currencies in 2018.
What’s Required from January 2026
UK crypto holders must provide comprehensive personal details to their cryptocurrency service providers, including:
- Full name, address, and date of birth
- Tax residence information
- National Insurance number or tax reference
- Complete transaction history, including values, asset types, and trading volumes
Failure to comply will result in penalties of up to £300 from HMRC.
Immediate Changes for 2024-25 Tax Year
HMRC is already requiring full crypto disclosure on self-assessment forms for the current tax year. A new dedicated section has been added to the capital gains pages where taxpayers must report:
- All cryptocurrency gains and income
- Bitcoin, Ethereum, Dogecoin, and other digital asset transactions
- Mining, staking, and lending activities
Tax Implications You Need to Consider
Capital Gains Tax (CGT)
CGT may be due when selling or exchanging cryptocurrency if you make a gain. With Bitcoin values surging from £38,000 in August 2024 to £86,000 in January 2025 (currently £80,000), many holders will face significant tax liabilities.
Income Tax and National Insurance
These taxes could apply to cryptocurrency received from:
- Employment payments
- Mining activities
- Staking rewards
- Lending activities
The Scale of Change
The Treasury estimates these measures will raise up to £315 million in unpaid tax by April 2030. With seven million people (12% of the UK population) now owning digital currency—up from 10% in 2023—the impact will be substantial.
Platform Reporting Requirements
Cryptocurrency service providers, platforms, and trading exchanges must collect and report detailed information to HMRC, including:
- Complete user transaction histories
- Asset holdings and values
- Trading patterns and volumes
- Personal identification details
Platforms face fines of £300 per user for failure to disclose information or submit inaccurate reports.
Global Implementation
The UK is among the first countries implementing CARF, with 52 countries adopting the framework. The EU, Jersey, Guernsey, Isle of Man, South Africa, and Uganda will implement by 2027, followed by the US, Singapore, Thailand, and others by 2028.
How Jermyn & Co Can Help
As experienced chartered accountants, we understand the complexity of these new regulations. Our team can assist you with:
- Compliance Planning: Ensuring you meet all new reporting requirements
- Tax Calculation: Accurately calculating CGT and income tax liabilities
- Record Keeping: Establishing proper documentation systems
- Self-Assessment Preparation: Completing the new crypto sections correctly
- Strategic Advice: Optimising your tax position within the new framework
Voluntary Disclosure Service
HMRC offers a crypto asset disclosure service for voluntary disclosures. However, we strongly recommend seeking professional advice before making any voluntary disclosure decisions, as the implications can be complex and far-reaching.
Take Action Now
Jonathan Athow, HMRC’s director general for customer strategy, urges all cryptocurrency users to check the details they’ll need to provide to their service providers. Don’t wait until the deadline—start preparing now.
The landscape of cryptocurrency taxation is changing rapidly. At Jermyn & Co Chartered Accountants, we’re committed to helping our clients navigate these new requirements successfully and minimise their tax exposure.
For expert guidance on cryptocurrency taxation and compliance with the new CARF requirements, contact Jermyn & Co Chartered Accountants today. Our experienced team is ready to help you understand your obligations and optimise your tax position.