October 31, 2025
Article
From 1 January 2026, anyone who invests in crypto assets will need to provide certain personal identifying details to the service provider used to buy, sell, transfer or exchange Cryptoassets.
The information will be used by HM Revenue & Customs in order to link cryptoasset activity to an individual tax record. This will make it easier for HM Revenue & Customs to find out what tax needs to be paid.
Failure to provide the information under the new regulations or providing inaccurate information could lead to a penalty of up to £300 from HM Revenue & Customs.
What is classed as a Cryptoasst Service Provider
Cryptoasset Service providers are any business that allows you to buy, sell, transfer or exchange Cryptoassets, including any that do these activities for you.
HM Revenue & Customs advise examples of Cryptoasset services include
- A wallet app you use to exchange bitcoin
- An online marketplace where you buy and sell non-fungible tokens (known as NFTs)
- A service you pay to manage your Cryptoasset portfolio
- HM Revenue & Customs examples of Cryptoassets are as follows
- Exchange tokens, like Bitcoin
- NFTs (non-fungible token)
- Utility tokens
- Stablecoins
- Security tokens
Personal Information Required
If the investment is made in personal name, the following details must be provided
- Full name
- Date of birth
- Usual home address
- Tax identification number, for UK residents this could be your National Insurance number or your Unique Tax Reference (UTR) if you complete a UK tax return.
- If the investment is held in another entity, like a limited company, partnership, trust or charity, the following information must be provided
- Legal business name
- Main business address
- Company registration number (for UK companies)
- Tax identification number (and country of issue for non UK companies) In certain circumstances, some entities may also need to provide personal details of the controlling individual.
This information must be provided to Cryptoassets service providers you use, including any that are not based in the UK.
In addition to this, the 2024/25 self-assessment tax return requires full disclosure of gains or income in a new dedicated section of the Capital Gains pages.
From 1 January 2026, the Cyptoassets service providers will need to share information with HM Revenue & Customs, including full details of taxable income or gains.
The regulations being introduced here in the UK are part of the OECD Cryptoasset Reporting Framework (CARF) which requires the Crypto platforms to share detailed information to tax authorities in countries adopting CARF. So far the CARF is being adopted by 52 counties with the UK being one of the first countries to adopt the new rules.
The Treasury estimates the measure will raise up to £315m in unpaid tax by April 2030 and HMRC have said the measures will provide them with the information to help people get their tax affairs right.
If you are worried previous gains have not been reported correctly, HM Revenue & Customs have a Cryptoasset Disclosure Service for voluntary disclosure. If you feel a voluntary disclosure may be required, please contact us here at Albert Goodman and we can help ensure the correct disclosure is made.
If you have any questions regarding the new regulations, please contact me or your usual Albert Goodman contact.