HM Revenue & Customs (HMRC) has recovered more than £8 million in unpaid taxes through settlements with over 500 cryptocurrency investors in the past two years, according to figures obtained via a Freedom of Information request. These settlements follow a crackdown launched by HMRC in November 2023 targeting tax evasion related to cryptoassets.

The data show that 502 investors reached disclosure agreements with HMRC, paying a combined total exceeding £8 million. In the 2024-25 tax year, 280 individuals settled outstanding tax liabilities amounting to £3.5 million. The following year, the number of settlements declined to 222, but the total sum paid increased to nearly £4.8 million.

This crackdown focused on encouraging investors to declare unpaid taxes associated with a broad range of digital assets including exchange tokens, non-fungible tokens (NFTs), and utility tokens. The campaign was accompanied by a significant increase in “nudge letters,” sent to tens of thousands of taxpayers suspected of underreporting crypto gains.

Under UK tax law, disposals of cryptoassets typically trigger capital gains tax (CGT) liabilities when gains exceed the annual exemption limit, which was lowered to £3,000 for 2024-25 from £12,300 in the previous tax year. CGT rates vary depending on income level, with basic-rate taxpayers paying 18 percent and higher-rate taxpayers subject to a 24 percent rate. In cases where HMRC classifies crypto activity as trading, gains may instead be taxed as income, with corresponding liabilities for income tax and national insurance contributions.

The recent settlements coincide with the implementation of new international reporting standards aimed at increasing transparency within the digital asset sector. The UK, alongside more than 40 countries, has adopted the OECD’s Cryptoasset Reporting Framework. From January 2026, cryptoasset providers in the UK will be required to collect extensive customer information, including identification, tax residency, and transaction details, which will be shared with both domestic and international tax authorities to prevent cross-border tax evasion.

HMRC stated in its annual report that it will exchange information on non-UK residents with tax authorities abroad and will receive corresponding data on UK residents from overseas partners, enhancing the global effort to monitor crypto tax compliance.

The regulatory push comes amid rapid growth in crypto ownership in the UK. Analysis by the Financial Conduct Authority estimates that approximately 8 percent of UK adults—around 4.5 million people—currently hold cryptoassets, with demand having more than doubled since 2020. This expansion has drawn increased scrutiny from tax authorities and regulators seeking to ensure compliance within the evolving digital asset market.