Over the past fiscal year, the British Revenue and Customs Service (HMRC) has sent over 81,000 warning letters, mails and text messages to encrypted asset holders, reminding those concerned that they may have underpaid their capital gains tax. This type of tracking of encrypted investors is expected to continue to increase as the British tax authorities gain more access to data next year.
The number of warnings is rising.
The results of a public application for information seen by the BBC show that between 2025 and 2026 HMRC sent 81,172 related reminders, while between 2023 and 2024 the figure was 27,714 and was nearly three times larger.
The PMRC states that the tax authorities regularly send reminders to taxpayers to help them check their declarations, including groups using encrypted assets. Investors who fail to declare profits from the sale of encrypted assets may face fines and, in serious cases, be prosecuted.
It is noteworthy that, under British tax rules, tax obligations may be triggered not only by the conversion of encrypted assets into French, but also by the fact that part of the currency exchange may be considered taxable.
Next year, we'll have more access.
The report mentions that the HMRC will be granted new enforcement powers next year to make it easier to target high netting encrypted investors. The accounting firm UHY Hacker Young Partner, Neela Chauhan, stated that the situation was changing in the past when some traders thought that tax authorities had limited visibility for their chain and transactional activities.
She stated that the tax authorities were generally of the view that there were more tax evasion and underreporting in the area of encrypted investment, and that many traders were younger, had had little dealing with HTML in the past and were not sufficiently aware of reporting requirements.
The changes are expected to lead to an increase of approximately Pound315 million in British revenues by April 2030.
Bitcoin's upswing became the focus of verification
Despite the fall in the prices of Bitcoin and the Ethera over the past year, the HMRC continues to suspect that the market left a considerable amount of undeclared capital gains during the round of increase from December 2022 to October 2025.
According to the data cited in the report, Bitcoin rose from about Pound14 million to Pound90,000 during this period and then returned to about Pound48 million in the last year. Accountants also remind investors to verify as soon as possible whether they have a duty to pay their taxes in order to avoid further pressure upon tax authorities to obtain more data.