Is Keir Starmer Targeting Your Crypto? UK Crypto Tax Crackdown Aims at 65,000 Traders
Is Keir Starmer targeting your cryptocurrency? Concerns about a UK crypto tax crackdown escalate as HMRC crypto tax notifications are sent to 65,000 crypto traders across Britain.
HM Revenue & Customs (HMRC), the UK’s crypto tax authority, has increased the volume of crypto warning notices it distributes, indicating a stricter stance on unreported digital-asset profits with the new administration in power.
As reported by a Financial Times article, HMRC has sent out approximately 65,000 “nudge” letters to individuals suspected of not fully reporting crypto earnings for the tax year 2024–25, a significant rise from the 27,700 sent the previous year.
This initiative aims to encourage more investors to voluntarily report their earnings as HMRC gains improved access to data from crypto exchanges.
Shrinking capital gains tax (CGT) allowances have further expanded the net, drawing more traders into the tax system.
The Financial Conduct Authority estimates that about 12% of adults in the UK, around 7 million individuals, now own cryptocurrencies, underscoring the extent of those potentially impacted.
DISCOVER: 16+ New and Upcoming Binance Listings in 2025
How Will the UK’s New Crypto Tax Regulation Impact Traders in 2025?
Per HMRC regulations, CGT applies when investors sell cryptocurrencies, exchange one token for another, utilize it for purchases, or gift it, with some exceptions.
Starting from the tax year 2024-25, Self Assessment forms will include a specific section for crypto assets, simplifying the process for both reporting and review by HMRC.
The latest push for crypto taxation in the UK is expanding the scope for traders. The Capital Gains Tax (CGT) allowance has significantly decreased to £3,000 for the tax years 2024/25 and 2025/26, down from £12,300 two years ago.
Consequently, a greater number of individuals will now be required to report their crypto profits to HMRC. The increase in tax notifications is occurring as the UK prepares to launch the Crypto-Asset Reporting Framework (CARF) starting on January 1, 2026.
This system will mandate domestic crypto platforms to gather and share comprehensive user and transaction information with HMRC as well as international counterparts.
So as of the start of the new tax year on 6th April 2026, owing to HMRC rules, Crypto Currency ETN’s will NOT be allowed to be held within an ISA in the UK.
(See guidance below from my broker today)#BTC@wally10100 @MrHemmingo @jwilf @SatoTradesX @2147mill @cashflow_king94 pic.twitter.com/z3HCCfsD3M
— CityTickers (@CityTickers) October 10, 2025
Significantly, the new regulations will also prohibit crypto asset ETNs from being included in UK ISA Investments, adding further pressure on UK crypto investors.
DISCOVER: 15+ Upcoming Coinbase Listings to Watch in 2025
What Implications Does HMRC’s £100M Crypto Tax Initiative Have for Traders?
HMRC states that CARF aims to “provide transparency on the transactions of cryptoasset users.” Failure to adhere could result in penalties, while the data shared will facilitate the detection of tax evasion internationally.
According to Treasury estimates, the new regulations could yield £40M in 2026-27, escalating to £110M in 2027–28, eventually stabilizing around £80M annually by 2029-30. This comprehensive crackdown aligns with the Labour government’s strategy to reduce the tax gap.
The 2025 Spending Review allocates resources for 5,500 new compliance officers and 2,400 staff focused on debt management, aiming for an additional £7.5Bn in yearly revenue by the decade’s end.
By distributing 65,000 letters—more than double last year’s total—HMRC strives to blend enforcement with deterrence. With new powers for data-sharing and enhanced access to exchange information, traders will encounter increased difficulty hiding unreported crypto earnings.
DISCOVER: 9+ Best Memecoin to Buy in 2025
Join The 99Bitcoins News Discord Here For The Latest Crypto market Updates
The article Is Keir Starmer Coming For Your Crypto? UK Crypto Tax Raid Targets 65,000 Traders first appeared on 99Bitcoins.
