Hundreds of people have reached settlements with HM Revenue & Customs as the tax authority presses on with its crackdown on unpaid tax linked to cryptocurrency, according to the Financial Times. The HMRC crypto tax crackdown signals that gains from digital assets are firmly on the taxman’s radar, and that holders who have not declared them face growing pressure to put their affairs in order.
The FT report indicates that the number of settlements is climbing as HMRC widens its focus on crypto investors. The exact figures behind these settlements, the total tax recovered, and the individual amounts involved are not set out in the material available here.
Why is HMRC targeting crypto holders?
HMRC treats cryptoassets such as Bitcoin and other tokens as property for tax purposes rather than as ordinary currency. Because of that, selling, swapping, or spending crypto can trigger a tax charge. The crackdown reflects HMRC’s view that many holders have gains they have never reported.
The Financial Times frames the wave of settlements as part of a continuing enforcement drive. In other words, this is not a one-off sweep but an ongoing effort, so anyone with undeclared crypto activity should assume the scrutiny will keep building rather than fade.
Calculate Your 2026 COLA Increase →What tax applies to cryptocurrency gains?
The precise tax treatment for each person depends on their individual circumstances, and the source material does not break down specific rates or thresholds. However, the general position HMRC applies to most crypto investors falls into two broad areas:
- Capital Gains Tax: This can apply when you sell crypto, exchange one token for another, or use crypto to pay for goods and services, if the disposal produces a gain above your annual exempt amount.
- Income Tax: This can apply where crypto is received as a form of income, for example through certain mining, staking, or payment for work.
Because the rules turn on how and why you acquired and used the assets, two people holding the same coin can face very different bills. For that reason, HMRC encourages holders to keep detailed records of every transaction.
What does a settlement with HMRC involve?
A settlement generally means an individual agrees the tax they owe and pays it, often alongside interest and possible penalties, rather than facing a longer dispute. The FT’s reporting points to hundreds of such agreements being reached as part of the crypto crackdown.
The specific terms of these settlements, including whether penalties were charged and at what level, are not detailed in the information available here. Anyone approached by HMRC, or worried they may be, would need to look at their own case rather than assume a standard outcome.
What should I do if I have undeclared crypto gains?
If you think you may owe tax on crypto that you have not reported, acting before HMRC contacts you generally puts you in a stronger position. Coming forward voluntarily can reduce penalties compared with waiting to be found. Practical steps include:
- Gather your transaction history: Pull together records of every buy, sell, swap, and payment across all exchanges and wallets you have used.
- Work out your gains and income: Separate disposals that may attract Capital Gains Tax from any crypto received as income.
- Check HMRC’s guidance: HMRC publishes dedicated guidance on how cryptoassets are taxed, which sets out how to report and, where relevant, how to disclose past liabilities.
- Consider professional advice: A tax adviser can help where your holdings are large or your transaction history is complex.
For example, if you bought tokens years ago and later swapped them for a different coin at a profit without reporting it, that swap could count as a taxable disposal, even though you never converted the crypto back into pounds.
How does HMRC know about crypto investors?
HMRC has increasingly obtained data from crypto exchanges and other platforms, which helps it match trading activity against tax returns. International moves toward sharing crypto account information between tax authorities are also expanding the picture regulators can see.
The exact data sources behind the settlements reported by the Financial Times are not specified in the material here. Still, the direction of travel is clear: the assumption that crypto activity stays private is becoming harder to sustain.
Where can I read the original report and check the rules?
The account of hundreds of settlements comes from the Financial Times, which you can read via this link. For the official position on how digital assets are taxed and how to report or disclose gains, check HMRC’s cryptoassets guidance on gov.uk. Because the crackdown is continuing, keeping your records straight and your reporting up to date remains the safest course.
