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, UK residents must report and pay tax on cryptoasset disposals and income under Self Assessment even if they have not received a letter, because the duty to notify rests with the taxpayer under HMRC guidance and compliance rules, source: HMRC. For 2024/25, crypto is treated as property subject to Capital Gains Tax on disposals with rates of 10 percent or 20 percent depending on income band, and the annual exempt amount is £3,000 per individual, source: HMRC. Crypto income from staking, mining, and many airdrops is generally taxable as income when received, and later disposals of those tokens can also trigger Capital Gains Tax, source: HMRC. Key dates for traders include the end of the tax year on 5 April and the online Self Assessment filing and payment deadline on 31 January following the end of the tax year for example 31 January 2026 for the 2024/25 year, source: HMRC. Reporting is required if you have Capital Gains Tax to pay or if total disposal proceeds exceed four times the annual exempt amount which is £12,000 for 2024/25, and allowable losses can be claimed to offset gains and carried forward if reported on time, source: HMRC. HMRC applies share matching rules to crypto including same day, 30 day matching, and Section 104 pooling which affects calculated gains and loss harvesting strategies for active traders, source: HMRC.