UK’s 81,000 crypto warnings offer a glimpse of 2027 tax crackdown

Britain’s tax authority sent more than 81,000 warning letters to crypto investors over the past year. This highlights a sharp rise in scrutiny of digital asset holdings. Meanwhile, a much bigger change is coming in 2027, when the UK and dozens of other jurisdictions are expected to begin automatically sharing crypto account information under a new global tax reporting framework.

The OECD’s Cryptoasset Reporting Framework (CARF) will come into effect in 2027 in the UK. It is one of 46 countries that committed, according to the OECD list of commitments issued in June. It is expected that 29 more countries will join in 2028, while the United States will become part of the framework in 2029. The UK tax authority, HM Revenue and Customs (HMRC), provides insights into how this enforcement framework might play out.

The 81,000 figure and how fast it climbed

Around 81,000 letters were uncovered via a Freedom of Information request made by the accounting firm UHY Hacker Young and published on August 20. The number of nudge letters sent out by HMRC has increased by 25% from about 65,000 letters sent out the previous year. The total number of letters in 2023-24 is merely 27,714, which signifies a nearly 300% increase in two years.

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