HMRC has confirmed UK exchanges and custodians must report every customer transaction from January 2027 under the OECD Cryptoasset Reporting Framework, with sterling-denominated annual returns.
Important Risk Warning
This is not financial advice. Cryptocurrency investments are highly volatile. The value of your investment can go down as well as up, and you could lose all the money you invest. Don't invest unless you're prepared to lose all the money you put in.
London — HMRC has finalised the rules requiring UK-based crypto exchanges, brokers and custodians to report every customer transaction to the tax authority from 1 January 2027, completing the UK's adoption of the OECD's Cryptoasset Reporting Framework.
The reporting net is wide. Reportable users include UK-resident individuals and entities, and reportable transactions cover crypto-to-fiat swaps, transfers to external wallets above a £1,000 threshold, and the use of crypto to pay for goods or services where the firm acts as the payment processor. The first annual return, covering calendar year 2027, will be due by 31 May 2028.
Reporting providers must collect and verify each user's full name, date of birth, address, country of tax residence and National Insurance number for individuals, or company number and UK Unique Taxpayer Reference for entities. Self-certification will be required at onboarding for new users, and providers have until 31 December 2026 to backfill the same data for existing customers.
Crucially, transaction values must be reported in sterling at the spot rate at execution, not in the user's local currency or the asset's native denomination. HMRC has confirmed it will publish an accepted list of pricing sources and will not penalise minor methodological differences provided the chosen approach is documented and applied consistently.
For ordinary British investors the practical effect is that capital gains and miscellaneous-income disclosures on the self-assessment return will, from tax year 2027-28, be pre-populated with data HMRC already holds. Anyone whose Self Assessment understates disposals visible in CARF returns can expect an automatic discrepancy nudge rather than an investigation, at least in the first year.
Penalties bite from year two. HMRC has set fixed penalties of up to £300 per inaccurate or missing user record for reporting firms, with daily penalties for continued non-compliance.
We use cookies to enhance your experience. By clicking "Accept", you agree to our use of cookies for analytics. See our Privacy Policy.
