If you hold cryptoassets, electronic money products, or other digital currencies, HMRC is increasing its scrutiny, and this could affect your Self Assessment tax return. Even casual investors or individuals who use digital assets occasionally need to be aware of these changes.

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What’s Changing

From 1 January 2026, financial institutions will report more data to HMRC under the Common Reporting Standard (CRS 2.0). This includes:

• Cryptoassets, including indirect investments through derivatives or investment vehicles

• Electronic money products

• Central bank digital currencies

HMRC will also require enhanced due diligence from these institutions and additional reporting data. While these rules are aimed at financial institutions and trusts, the information HMRC collects may be used to cross-check Self Assessment tax returns.

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Why This Matters for Your Self Assessment

Even if you aren’t a financial professional, these changes are important because:

• HMRC will now have more visibility of crypto holdings and transactions through third-party reporting

• They may use this information to identify undeclared income or gains in Self Assessment

• Accurate record-keeping of all crypto transactions, disposals, and holdings is increasingly essential

• Mistakes or omissions could lead to penalties, interest, or additional tax

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What You Should Do Now

To make sure your Self Assessment is correct:

1. Keep detailed records of all crypto transactions — purchases, sales, exchanges, and transfers
2. Calculate gains and losses carefully for each disposal or conversion
3. Include all taxable crypto income in your Self Assessment, such as staking rewards, airdrops, or income from crypto services

4. Seek professional advice if you are unsure how to report cryptoassets or calculate gains

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Our Advice

At Amlink, we can help you review your crypto holdings, ensure your Self Assessment is complete, and make sure HMRC’s enhanced reporting doesn’t catch you off guard.

Even if you only hold crypto as an investment, preparing now will help you avoid penalties and make your tax filing simpler.