The United Kingdom’s tax authority will implement new regulations starting January 1, 2026, requiring crypto asset users to provide tax identification numbers and other personal information to service providers.
Streamlining Tax Assessments and Penalties
The United Kingdom’s tax authority, His Majesty’s Revenue and Customs (HMRC), has announced new regulations that will require crypto asset users to furnish service providers with tax identification numbers among other personal details starting Jan. 1, 2026. This move is designed to enhance HMRC’s ability to link crypto asset activity with individual and entity tax records, simplifying the process of determining tax obligations.
As per the guidance issued by the U.K. government, persons buying, selling, transferring or exchanging crypto assets through a service provider, regardless of whether the provider is based in the UK, will also be required need to provide full names, date of birth, address and their country of normal residence.
With respcet to the tax identification numbers, the government advised UK residents to provide their National Insurance number or Unique Taxpayer Reference (UTR). However, individuals not eligible for a TIN in their country are exempt from this requirement.
Entities such as companies, partnerships or charities will be obliged to provide their respective legal business names, business address and company registration number if incorporated in the U.K. According to the guidance, some entities will also be required to provide details of their controlling person.
The HMRC’s objective is to streamline the process of assessing crypto-related tax liabilities. By mandating that service providers collect and potentially share this data, the tax authority aims to gain a clearer picture of users’ crypto asset dealings.
The guidance warns that providing inaccurate details or failing to provide the necessary information could result in a penalty of up to $407 (£300).
Meanwhile, the guidance clarifies that if a user sells, trades or gives away crypto assets they may be liable to pay capital gains tax while those receiving digital assets from employment or mining are obliged to pay income tax and national insurance contributions.