While crypto currency holders were warned of a crackdown on tax avoidance earlier this year, last week’s Budget confirmed that new rules are to come into play from January 2026.
Crypto changes and new tax rules
From the 1st of January 2026, those who own crypto, such as Bitcoin, Ethereum or Dogecoin, will have to provide their personal details to every crypto service provider they use.
This is to ensure they are paying the right tax on their crypto transactions, and those who do not comply risk facing penalties.
These new rules mean that crypto service providers must collect and report the following:
- Your name, address and date of birth
- Your tax residence
- Your National Insurance number or tax reference
- A summary of your crypto transactions
From 2027, these platforms will begin sending this information on to HMRC, which will give the tax authority insight into people’s crypto gains for the first time.
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Crypto holders urged to act now
Those who buy or sell crypto currency are being urged to get their tax affairs in order now, and they must ensure that they report their profits accurately on their self-assessment tax returns.
Seb Maley, CEO of tax insurance provider, Qdos, commented, “This marks a major shift in how crypto trading is monitored from a tax perspective. HMRC will soon know exactly who is making gains – and how much.
“Anyone who holds or trades cryptocurrency must ensure they are reporting the gains on their self-assessment tax return. HMRC is set to have more information and data at its fingertips than ever before.
“With platforms set to keep a record of this information from 1st January 2026, ahead of sharing it with HMRC the year after, the tax office will be able to cross-check tax returns against the data they’ve received.
“And it goes without saying that HMRC will have no hesitation in launching an investigation if the numbers don’t match.”
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