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Open it with me · HMRC’s cryptoassets letter · July 2026

“Cryptoassets - information to help you understand your tax position”

Last reviewed 10 October 2026 · How Tax Letters checks its facts

A real HMRC letter, from the campaign ICAEW reported in July 2026. HMRC’s words on the left, exactly as published. What each paragraph means on the right.

Letter text: HMRC letter CAMM3MM, published by ICAEW’s Tax Faculty, July 2026.

Left out: HMRC’s letterhead and reference line, “Yours sincerely”, and HMRC’s two closing paragraphs about the personal tax account and the HMRC Charter.

  1. What HMRC wrote

    We’re writing because we have information that suggests you’ve engaged in cryptoasset activities. We want to help you understand when you need to report cryptoasset transactions, and how to update your tax position.

    What it means

    Why you got this. ICAEW says that between July 2026 and March 2027 HMRC’s Wealthy and Mid-sized Business Compliance team will contact individuals it believes may have underpaid Income Tax or Capital Gains Tax on transactions in cryptoassets.

    The letter says HMRC has information that suggests cryptoasset activity. In this paragraph it does not say you owe anything: it says it wants to help you understand when to report and how to update your tax position.

  2. What HMRC wrote

    When you sell, use, or receive cryptoassets

    We usually treat cryptoassets in the same way as other assets.

    You may need to pay Capital Gains Tax (CGT) if you:

    • sell them for fiat currency, like pounds or dollars – gains from these transactions are taxable, even if you don’t withdraw the money you make from the cryptoasset exchange
    • exchange them for another cryptoasset, like exchanging bitcoin for Ether, or using bitcoin to buy a non-fungible token (NFT) - these are taxable transactions, even if you don’t convert the gains back to fiat currency
    • use them to buy goods or services
    • give them away to someone who isn’t your spouse or civil partner – you’ll be treated as having received the pound sterling value of the cryptoasset, even if you don’t actually receive anything.

    What it means

    When Capital Gains Tax can apply. GOV.UK says you may need to pay Capital Gains Tax if you make a gain when you dispose of cryptoasset tokens by selling them, exchanging them for a different type of cryptoasset, using them to pay for goods or services, or giving them to another person (unless it is a gift to your spouse, civil partner or charity).

    GOV.UK says that if your total gain for the tax year is above the Capital Gains Tax tax-free allowance, you must report the gain to HMRC and pay Capital Gains Tax.

  3. What HMRC wrote

    You may need to pay Income Tax if:

    • you received income from cryptoasset-related activities, like lending, staking and mining
    • your cryptoasset activities constitute a trade, although only in exceptional circumstances would we accept this to be the case
    • you received income in the form of cryptoassets.

    You may also owe Income Tax and National Insurance contributions (NICs), if you were paid in cryptoassets for employment.

    What it means

    When Income Tax can apply. GOV.UK says cryptoasset exchange tokens you receive from employment, or from activities such as mining, staking or lending, count as income.

    GOV.UK says that if you receive tokens as income you need to keep records and may need to pay Income Tax and National Insurance contributions.

  4. What HMRC wrote

    Reporting unpaid tax on cryptoassets

    If you haven’t declared all your income or capital gains, you need to do so.

    You can amend your Self Assessment return if you’re within the time limit for the relevant tax year. Go to GOV.UK and search ‘Self Assessment corrections’, then choose ‘if you need to change your return’.

    From tax year 2024 to 2025, Self Assessment returns have a dedicated cryptoasset section on form SA108 - boxes 13.1 to 13.8.

    If it’s too late to amend your return, you can use our disclosure service. Go to GOV.UK and search ‘tell HMRC about unpaid tax on cryptoassets’.

    If you’re satisfied your tax affairs are correct you don’t need to take any further action or contact us.

    What it means

    This letter names no date. The law has one. The letter says you can amend your Self Assessment return if you are within the time limit for the relevant tax year. It does not name a date.

    Section 9ZA of the Taxes Management Act 1970 says an amendment to a Self Assessment return may not be made more than twelve months after the filing date.

    GOV.UK gives the example that for the 2024 to 2025 tax year you will usually need to change your return by 31 January 2027.

    The step that depends on the date. ICAEW says that where the taxpayer has income or gains to report, they amend their Self Assessment return for the tax year, or, where they are too late to amend it, use HMRC’s disclosure service.

    GOV.UK’s cryptoasset disclosure page says that income or gains from the current or previous tax year are declared on a Self Assessment tax return.

    ICAEW says the Self Assessment return for 2024 to 2025 and later years has new boxes for recording capital gains and losses on cryptoassets separately from gains and losses on other assets.

    If you are satisfied. ICAEW reports that no action is required where the taxpayer believes they do not have any income or gains to report.

  5. What HMRC wrote

    Extra support

    If you have any health or personal circumstances that may make it difficult for you to deal with us, please tell us. We’ll help you in whatever way we can.

    For more information about this, go to GOV.UK and search ‘get help from HMRC if you need extra support’.

    What it means

    This is an offer of help, and a team exists for it. GOV.UK says you can get extra support from HMRC if your health condition or personal circumstances make it difficult when you contact HMRC.

    GOV.UK says you can get an appointment with the extra support team by asking your adviser when you call an HMRC helpline, using the extra support team webchat service, or using British Sign Language or an online form for home visits.

  6. What HMRC wrote

    If you owe more tax but don’t take any action

    If we later find you have tax to pay and you’ve chosen not to tell us, we may work out what we think you owe and send you a bill. We’ll charge interest on any tax you pay late. For more information, go to GOV.UK and search ‘pay Self Assessment tax bill’.

    We may also charge a penalty which could be up to 100% of the additional tax you owe.

    For more information about the penalties we may charge, and what you can do to reduce them, go to GOV.UK and search ‘CC/FS7a’ and ‘CC/FS11’.

    What it means

    What “interest” and “penalty” refer to here. ICAEW says HMRC will charge interest on any tax paid late, and that if HMRC finds the taxpayer failed to report income and gains it could charge a penalty of up to 100% of the tax due.

    HMRC’s factsheet CC/FS7a calls it an unprompted disclosure when you tell HMRC about an inaccuracy before you have any reason to believe it has discovered it, or is about to, and a prompted disclosure at any other time.

    CC/FS7a says the minimum penalty for an unprompted disclosure is lower than the minimum penalty for a prompted one.

  7. What HMRC wrote

    Contacting us

    If you have questions about how to make an amendment or a disclosure, or you want to give us information about your cryptoasset transactions, you can:

    • call us on 03000 552294 – our lines are open Monday to Friday, 9am to 4.30pm
    • email us at [email protected] – before you email, please go to GOV.UK, search ‘corresponding with HMRC by email’ and read the guidance with this name.

    You can also write to us at the address at the top of this letter, but we can reply more quickly if you email.

    We can’t correct your tax return for you, help you work out your tax position or give you specific tax advice about your circumstances over the phone.

    If you contact us, we can help you more quickly if you quote our reference number and give us a daytime phone number.

    What it means

    How HMRC says it makes contact. GOV.UK says that if you have traded in cryptoassets, HMRC may contact you by letter, email or text message.

    GOV.UK says the text message will direct you to guidance on GOV.UK.

  8. What HMRC wrote

    More information

    Go to GOV.UK and search:

    • ‘tax and cryptoassets’ – for more about how we tax cryptoassets
    • ‘Self Assessment tax returns’ – for help on how to fill in your tax return correctly.

    There’s also a short YouTube video about tax on cryptoasset transactions for individuals. Search ‘cryptoassets and paying tax’ on the HMRCgovuk YouTube channel.

    Cryptoassets can be a complex area of tax, and you may want to get professional advice. If you’ve told us you have a tax adviser, we’ll send them a copy of this letter.

    It’s your responsibility to make sure your tax returns are completed correctly.

    What it means

    Where these pointers lead. HMRC’s own pages on each part of the letter are on GOV.UK. The ones this walk-through draws on are linked beside the paragraphs above.

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