HMRC sees hundreds settle amid ongoing crypto tax crackdown

The UK’s tax authority is done being polite about crypto taxes. HMRC’s Cryptoasset Disclosure Facility, launched in November 2023, has now processed 280 settlements totaling £3.5 million, with the pace of voluntary confessions accelerating sharply this fiscal year. Of those 280 settlements, 222 came during the 2025/26 fiscal year alone. The nudge heard round the kingdom HMRC isn’t just waiting for people to come forward out of the goodness of their hearts. The agency issued over 65,000 “nudge letters” during the 2024-25 tax year, nearly doubling the volume from the prior year. Here’s the thing about HMRC’s estimates: they believe non-compliance among UK crypto holders sits somewhere between 55% and 95%. That’s a remarkably wide range, but even the low end means more than half of crypto investors in Britain aren’t properly reporting their gains. CARF is coming Starting in January 2026, the Crypto-Asset Reporting Framework, known as CARF, will require crypto service providers to report user data directly to HMRC. CARF isn’t a solo British endeavor. The framework involves the UK and 48 other nations working together, meaning that moving your activity to an overseas exchange won’t nece...