Although cryptocurrency prices such as Bitcoin and Ethereum have fallen from their recent highs, HMRC believes investors may still have significant unpaid capital gains tax from profits made between December 2022 and October 2025.
During this period, the price of Bitcoin surged from approximately £14,000 to £90,000, creating substantial potential gains for cryptocurrency investors.
Tax experts are urging crypto investors to review their transactions and check whether they have outstanding capital gains tax liabilities, particularly as new reporting powers will make it easier for HMRC to identify taxpayers.
From March 2027, cryptocurrency platforms in dozens of countries outside the UK will be required to share customer information with tax authorities under new international reporting rules.
When the rules were announced last year, HMRC said the new measures would help ensure that cryptocurrency users pay the tax they owe.
HMRC estimates that the changes could raise up to £315m by April 2030. The tax authority said this is equivalent to the funding required to employ more than 10,000 newly qualified nurses for a year.
“Once HMRC has access to this data, tax investigations involving cryptocurrency investors will become far easier,” Chauhan warned.
Bitcoin later fell to around £48,000, but investors may still be liable for capital gains tax on profits realised when they sold, exchanged or otherwise disposed of their cryptocurrency.
Source: www.bbc.co.uk