UK Crypto Investors Face Halloween Deadline for Paper Tax Returns

Core Insights - U.K. taxpayers must file paper tax returns by midnight on October 31 for the year ending April 5, including those with crypto capital gains exceeding £3,000 [1][7] Tax Compliance and Regulation - The U.K. tax system equates cryptocurrencies with other financial assets, but enforcement mechanisms for tax compliance have been less stringent compared to traditional finance [2] - HMRC previously attributed low tax compliance among crypto investors to a lack of awareness, prompting an educational campaign to clarify tax obligations [3] Upcoming Changes - Starting January 2026, U.K. crypto exchanges will be mandated to collect national insurance numbers from users and report transaction data to HMRC [4] - A recent initiative led to nearly 65,000 warning letters being sent to suspected non-compliant taxpayers in the 2024-25 tax year [4] Taxation Details - Capital gains tax applies to net profits exceeding £3,000 from all asset disposals, including cryptocurrencies, with a basic tax rate of 10% for individuals earning up to £50,270 for the 2024-2025 tax year [5] - For the current tax year, the basic rate is 18% and the higher rate is 24%, applicable to all gains for taxpayers whose total income exceeds the threshold [6] - Taxpayers must file a return if net capital gains exceed £3,000 or total disposal proceeds exceed £12,000, but only profits above the exemption are taxable [8]