Some 502 crypto investors have settled unpaid tax bills with HMRC through voluntary disclosure over the past two years, with the taxman collecting a combined £8,328,132, according to a Freedom of Information request by Identomat.
The figures show 280 individuals came forward in 2024/25, generating £3,543,387 in settlements. The following year, 2025/26, saw fewer disclosures at 222, yet the amount recovered rose to £4,784,745. These represent the first complete annual snapshots since HMRC opened its disclosure route for unpaid tax on exchange tokens, NFTs and utility tokens in November 2023.
The size of the typical settlement also grew markedly, rising from £12,654 in 2024/25 to £21,552 a year later, giving a two-year average of £16,589.
HMRC cautioned in its response that settlement values can differ widely and stressed that voluntary disclosure is only one of several tools it deploys against crypto non-compliance, alongside enquiries, data analysis and targeted interventions. Around 100,000 nudge letters are understood to have been issued to suspected evaders across the two years.
Under HMRC guidance, a disclosure should set out how the taxpayer proposes to cover the tax owed, plus penalties and interest, with the authority free to accept or reject the offer. Selling digital assets will usually create a Capital Gains Tax liability, with the annual exemption now standing at £3,000, sharply lower than the £12,300 available in earlier years, and gains taxed at 18% or 24% depending on income.
Where HMRC deems crypto activity to amount to trading, income tax and national insurance may apply instead, with individuals expected to report through self-assessment.
The disclosure data lands as a far tougher regime takes hold. From January 2026, exchanges have been obliged to gather detailed records on UK customers under the OECD’s Cryptoasset Reporting Framework, which more than 40 countries have adopted, with international data exchange expected from 2027.
Zurab Kotaria, Co-Founder & CEO, Identomat LTD, 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. New rules came into force on January 1, 2026, requiring exchanges to collect detailed transaction records from UK customers, including their gains.
“The UK is among more than 40 countries adopting rules developed by the OECD known as the Cryptoasset Reporting Framework (CARF).
“Platforms must collect each customer’s name, address, date of birth, tax residence, National Insurance number or tax reference, and a summary of their crypto transactions — and report all of this to HMRC or face fines.
“Non-compliant platforms can face fines of £300 per user record for missing or inaccurate report – which can quickly clock up to millions of pounds for larger platforms.
“Overlapping anti-money laundering rules mean non-complaint platforms face additional penalties from the Financial Conduct Authority (FCA) including removal from the Cryptoasset Register, triggering a requirement to cease trading. One leading platform was fined £3.5million in 2024 for weak onboarding controls.
“As part of the new rules, transaction data is now being compiled into national reports with an expectation that these will be exchanged internationally from 2027 by signatories to CARF.”
Kotaria added, “The emerging compliance regime presents significant operational challenges for crypto platforms, many of whom are starting with a blank sheet.
“The task of verifying the identities of millions of existing customers who may have registered in an era of light-touch regulation, combined with the challenge of onboarding of new investors, more often than not requires new tech infrastructure.”
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