According to the source, the UK Budget confirms that new crypto reporting rules will take effect from January 1, signaling tighter disclosure requirements for crypto activity in the UK. Source: HM Treasury Budget publication. UK traders should ensure complete, timestamped records of all crypto transactions and prepare accurate capital gains and income calculations in line with HMRC guidance on cryptoassets and Self Assessment. Source: HMRC Cryptoassets Manual; HMRC Self Assessment guidance. HMRC requires the share pooling method for calculating capital gains on crypto, and incomplete records increase audit and penalty risk; traders should reconcile exchange exports and wallets before year-end. Source: HMRC Capital Gains manual for cryptoassets. The lower UK capital gains tax annual exempt amount of £3,000 for 2024–25 heightens the importance of precise gain/loss reporting for active crypto traders. Source: HM Treasury and HMRC CGT allowance guidance.

According to the source, the UK tax authority HM Revenue & Customs is intensifying compliance outreach to crypto investors over unpaid gains, and HMRC classifies most cryptoasset disposals as taxable capital gains that must be reported via Self Assessment. Source: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual The UK reduced the Capital Gains Tax annual exempt amount to £3,000 from April 2024, bringing more BTC and ETH profits into scope for tax reporting and payment. Source: https://www.gov.uk/capital-gains-tax/allowances HMRC can obtain user and transaction data from crypto exchanges using statutory information powers and data-gathering notices, while UK crypto firms must comply with the crypto Travel Rule, enhancing traceability of transfers. Source: https://www.gov.uk/guidance/checks-what-hmrc-can-do; https://www.fca.org.uk/firms/cryptoassets/travel-rule Late filing and late payment trigger penalties and interest, increasing effective trading costs for UK-based crypto traders if gains are unreported or paid late. Source: https://www.gov.uk/self-assessment-tax-returns/penalties; https://www.gov.uk/government/publications/interest-rates-for-late-and-early-payments/interest-rates-for-late-and-early-payments For trade planning, HMRC applies pooling and the same-day and 30-day matching rules to cryptoassets, affecting tax-loss harvesting and cost basis calculations, so accurate transaction records are essential. Source: https://www.gov.uk/hmrc-internal-manuals/cryptoassets-manual; https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg51500 Cross-border data visibility is set to expand as jurisdictions implement the OECD Crypto-Asset Reporting Framework, to which the UK has committed, increasing compliance risks for offshore holdings. Source: https://www.oecd.org/tax/exchange-of-information/crypto-asset-reporting-framework-and-amendments-to-the-common-reporting-standard.htm