Crypto investors settled their tax liabilities with HMRC on 502 separate occasions during the 2024-25 and 2025-26 tax years, generating combined revenue of just over £8 million, according to a Financial Times report. The settlements form part of an ongoing crackdown on unpaid taxes linked to digital assets, with HMRC now publishing detailed figures that provide a rare insight into the scale of enforcement.
More than 500 settlements over two years
During the 2024 to 2025 tax year, 280 investors paid a combined £3.5 million, while the following year saw 222 settlements bring in approximately £4.8 million. This brings the average settlement across the two years to around £16,600 per investor. The figures, obtained through a Freedom of Information request submitted by financial services compliance firm Identomat, show that while the number of settlements declined year on year, the total value increased, suggesting that HMRC is targeting larger amounts of unpaid tax.
The settlements followed the launch of HMRC’s crypto disclosure campaign in November 2023, which allows investors to voluntarily report unpaid taxes linked to exchange tokens such as Bitcoin and Ethereum, utility tokens, and non-fungible tokens (NFTs). The campaign gives investors an opportunity to regularise their tax affairs with reduced penalties, but it also signals that HMRC is paying closer attention to crypto gains, which are taxable as capital gains or income depending on the activity.
Warning letters on the rise
HMRC has also stepped up its communication with crypto investors. Between 2020 and 2025, the tax authority issued 101,024 crypto-related warning letters, nearly 65,000 of which were sent during the 2024 to 2025 tax year. That compares with 27,712 letters in the previous year, a sharp escalation in enforcement activity. The letters typically remind taxpayers of their reporting obligations and warn of penalties for non-disclosure.
Zurab Kotaria, chief operating officer at Identomat, which submitted the Freedom of Information request, said the figures reflected a wider compliance drive. He said: "These settlements are part of a broader compliance crackdown by the authorities which has significant implications for both crypto investors and the platforms they use."
Experts say non-compliance remains widespread
Dawn Register, a partner in BDO's tax dispute resolution team, cautioned that the number of settlements remains small when set against the size of the UK's cryptocurrency market. She said: "A very small number. However, I would say this is the tip of the iceberg in terms of non-compliance. I still meet a lot of taxpayers who still view crypto investing as gambling and they are not aware that the gains are taxable."
Her comments underline the challenge HMRC faces in collecting tax on digital assets, which often cross borders and can be held anonymously. Many investors may not realise that even buying and selling crypto for profit triggers a tax event, or that crypto-to-crypto trades are also subject to capital gains tax.
International data sharing to expand
HMRC’s latest annual report confirmed that it is increasing its international cooperation on crypto tax matters. The report states: "We will exchange that information on non-UK tax residents with relevant international partners and receive information from them on UK tax residents." This signals a more coordinated global approach to tracking crypto holdings and income, which could lead to further compliance activity in the coming years.
For the growing number of UK crypto investors, the latest figures serve as a reminder that tax obligations on digital assets are not optional. With HMRC increasingly using data from exchanges and warning letters, the likelihood of detection for those who fail to report gains is rising. Platforms that facilitate crypto trading may also face greater scrutiny, as authorities look to close the tax gap on digital wealth.
