Cryptocurrencies: £8 million in evaded tax recovered in the UK over three years

Eight million pounds is the sum that the UK tax authorities have collected through settlement agreements with hundreds of individuals who had invested in cryptocurrencies. This was revealed by the Financial Times, which reports that in the 2024/2025 tax year, 280 investors reached settlements with the tax authorities, totalling £3.5 million. In 2025/2026, the number of settlements fell to 222, but the total amount paid rose to around 4.8 million pounds.

The figures, explains the FT, illustrate the impact of the voluntary disclosure campaign launched by the UK tax authority in November 2023, aimed at those who had not correctly declared income or capital gains arising from non--fungible tokens (NFTs), exchange tokens such as Bitcoin and utility tokens. At the same time, the sending of reminder letters to tens of thousands of individuals deemed to be potential tax evaders had been stepped up.

In the United Kingdom, the tax treatment of crypto-assets provides that, in the event of a disposal, if the capital gain exceeds three thousand pounds, the gains are subject to capital gains tax. The rate varies between 18 per cent and 24 per cent, depending on the taxpayer’s other income. Should the tax authorities consider the buying and selling of cryptocurrencies trading – as explained to the FT by Identomat, a provider of compliance services in the financial sector – income tax and social security contributions may also be due.

The agreements, the British business newspaper adds, come at a time when hiding crypto proceeds is becoming more difficult due to international reporting standards. The UK has, in fact, adopted the OECD’s Crypto-asset Reporting Framework (CARF), which requires crypto-asset service providers to collect and report information on customers and transactions to the tax authorities. Specifically, from January 2026 in the UK, providers must collect users’ identification data, information on tax residence and transaction summaries.

The increase in checks, notes the FT, is occurring in parallel with a sharp rise in the uptake of cryptocurrencies in the UK. According to estimates by the UK Financial Conduct Authority, around 8 per cent of adults in the UK – that is, 4.5 million people – hold crypto-assets. Furthermore, demand is said to have more than doubled compared with 2020. The average investor holds £2,250 in crypto, and only 16% have more than £5,000 invested in crypto assets.