From 1 January 2026, new reporting rules will give HMRC a clearer view of who uses cryptoasset service providers and the transactions involved.
Under the new rules, service providers must collect specific data and report information on their users. Users will also need to provide identifying details. Failure to do so, or providing inaccurate information, can result in a penalty of up to £300.
International Information Sharing
This is part of the global initiative to standardise cryptoasset reporting, known as the Cryptoasset Reporting Framework (CARF). The framework aims to make cryptoasset transactions more visible for tax purposes by sharing information across countries.
How It Will Work
The rules apply to any UK-based business that:
- Transacts cryptoassets on behalf of users
- Provides a means for users to buy, sell, transfer, or exchange cryptoassets
Examples of affected services include:
- Online marketplaces where NFTs (non-fungible tokens) are bought and sold
- Wallet apps used to exchange bitcoin
- Services that manage a cryptoassets portfolio for clients
If you use a cryptoasset service provider after 1 January 2026, you will need to supply identifying information. This will link your crypto transactions to your tax records and help HMRC establish any tax liability.
Even if you live in the UK but use a non-UK cryptoasset service provider, your information will be shared with HMRC if the provider’s country participates in CARF.
Next Steps
Taxation of cryptoassets can be complex. Professional guidance can help ensure compliance and avoid penalties. Please contact us for further advice.
