HMRC Targets Crypto Trades With New Tax Rules in January 2026

The changes mean that anyone holding or trading digital assets in the UK is required to pay attention to how their activities are reported, or risk facing financial penalties or even prosecution.

One of the main points is that HMRC often treats crypto as a capital asset. This means Capital Gains Tax (CGT) can apply when someone sells cryptocurrencies for money, exchanges them for other cryptocurrencies, or gifts them to anyone other than a spouse.

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There is a small allowance to reduce the impact for lower amounts. If total gains in a tax year are under £3,000, CGT does not apply. However, this is lower than in the past, so transactions that previously fell below the threshold might be taxable.

HMRC is also increasing its ability to detect unreported gains. The agency is working with major exchanges and using blockchain analysis to track activity.

If tokens are received as payment for work or services, they are taxed as income instead. The same applies to coins earned from mining or staking. In these cases, standard income tax rules apply, and the UK’s personal allowance of £12,570 can be used.

Meanwhile, on August 11, Wisconsin legislators introduced Senate Bill 386 to address scams involving crypto kiosks. What does the bill cover? Read the full story.