Starting January 1, 2026, the UK’s tax authority will begin monitoring information about crypto asset owners for tax calculation and assessment. This is outlined in the updated guidance from the regulator.
The agency categorizes crypto assets as:
- exchange tokens, including Bitcoin;
- non-fungible tokens (NFTs);
- utility tokens;
- stablecoins;
- tokenized real-world assets.
Tax calculations may also apply to representatives of cryptocurrency-related services, including:
- crypto wallets;
- NFT marketplaces;
- crypto asset portfolio management services.
The data required depends on the user’s status. Individuals must provide:
- full name;
- date of birth;
- permanent address and residency;
- tax identification number.
For legal entities, disclosure of company and registration details is required.
A fine of up to £300 is stipulated for providing false or inaccurate information.
A tax deduction of up to £1000 annually on trading income and other profit sources is possible.
Any receipt of payment in tokens for work, trading, mining, staking, or providing liquidity in DeFi pools will be considered income.
Capital gains tax may also be required if an individual:
- sells their tokens;
- exchanges tokens for another type of crypto asset;
- uses tokens to pay for goods or services;
- transfers tokens to another person (unless it is a gift to a spouse or civil partner).
Earlier in June, the British bank Barclays blocked cryptocurrency transactions on cards for its customers.