HMRC Cryptoasset Reporting Changes from 2025

We would like to bring HMRC’s upcoming reporting changes for cryptoassets on self-assessment tax returns to your attention.

From tax year 2024-25 onwards, the HMRC cryptoasset reporting changes will see taxpayers be required to separately identify amounts relating to cryptoassets on their self-assessment tax return forms. This includes all transactions involving cryptocurrencies and non-fungible tokens (NFTs). The aim of these changes is to provide greater scrutiny on the reporting of all crypto transactions. HMRC will be able to cross-reference the data provided by crypto exchanges and other trading platforms.

It is important to note that the heightened scrutiny of cryptoasset holders comes at a time when the tax-free capital gains tax (CGT) allowance is being reduced. Separating out cryptoassets on the capital gains pages will help HMRC to better understand the crypto activity of taxpayers. They will also be able to remind taxpayers of their obligations to consider the tax position of their crypto holdings.

Reporting your cryptoasset information correctly will become even more important. Poor reporting could lead to potential enquiries or penalties from HMRC.

Failure to report your crypto sales may result in a ‘nudge letter’ from HMRC prompting you to disclose. If there is tax to pay, penalties can be much larger (up to 200%) if HMRC contacts you first, so it is always better to bring any historic reporting to their attention first.

As a reminder, transferring one cryptoasset or currency to another is a disposal under UK tax laws. Therefore, a careful check of your crypto transactions is important to make sure your tax reporting is up to date.

Lastly, it is important to consider your domicile status when reporting your cryptoassets. HMRC’s view is that crypto is located where the holder is resident.

Contact us

This article is only generic advice and not tax-specific.  If you require further information or assistance regarding the HMRC changes and how to report your cryptoassets correctly, please contact us and our team of Crypto Accountants will be happy to help.

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