QE Tax Flash: Crypto Less Cryptic?

The UK tax authority has sent more than 81,000 “nudge” letters to cryptoasset holders over the last 12 months, prompting them to review their capital gains position before HMRC does it for them and opens an enquiry. 

A nudge letter, email or text creates no new obligation, and no penalty attaches to receiving one. It doesn't displace the duty to notify chargeability that already applies. HMRC will also shortly be equipped with a wealth of crypto data, which should give recipients of nudges pause. 

This will be done via the Cryptoasset Reporting Framework, which has applied in the UK since 1 January 2026. UK cryptoasset service providers have spent this year collecting user and transaction information. The first reports, covering the whole of the 2026 calendar year, are due to be filed by those providers with HMRC by 31 May 2027. Information on UK residents using overseas platforms will follow through exchange-of-information processes between tax authorities. By the middle of 2027, HMRC will be able to measure a return against transaction-level records instead of working from inference. 

The Financial Conduct Authority's most recent research estimates that 8% of UK adults are cryptoasset holders, down from 12% reported in 2024, which suggests there was a large volume of disposals in the last tax year. Those who have disposed of cryptoassets, and particularly those who have received a nudge letter, would be well-advised to carefully review their Capital Gains Tax position before an enquiry or discovery assessment arrives.