Starting 1 January 2026, crypto asset exchanges will be required to share information about their customers’ crypto transactions with HMRC (HM Revenue & Customs). This change follows the UK’s commitment to international efforts aimed at increasing transparency around digital assets and preventing tax evasion. In practical terms, this means that exchanges will begin reporting details such as transaction amounts, asset types, and customer information directly to HMRC.
For anyone who buys, sells, or trades crypto assets — including Bitcoin, Ethereum, NFTs, or other tokens — this is a timely reminder to make sure your tax affairs are in order. Many people don’t realise that crypto transactions can give rise to taxable capital gains or losses, just like traditional investments. If you’ve sold crypto, or traded one type of crypto for another (crypto to crypto trade), there is a capital gain or loss. This will need to be included on your tax return, and any capital gains tax paid.
Once reporting begins, HMRC will be able to cross-check taxpayer declarations against data provided by exchanges. Failing to report crypto gains or omitting them from your tax return could therefore result in tax enquiries and potentially large penalties.
Here are two common misconceptions:
To stay compliant, it’s sensible to review your crypto transaction history now, calculate any gains or losses, and ensure they are accurately reflected in your tax return. Keeping good records and seeking professional tax advice where necessary will make the process smoother — and help you avoid unpleasant surprises once HMRC begins receiving this data in 2026.
If you would like a chat about how I could help you with crypto or general tax matters, please get in touch.
Rob Glover FCCA
Tel 07831 273471
https://robglover.net/
https://onthespottax.co.uk/tax-accountants/london-north-home-counties-accountants/rob-glover-fcca
I have over 30 years experience as a finance, accounting and tax specialist, both in the corporate world and in practice, and am a qualified accountant.
