At the Autumn Budget 2024, the government confirmed that it would implement the cryptoasset reporting framework (CARF) in the UK. The Organisation for Economic Cooperation and Development (OECD) developed CARF to make transactions in cryptoassets more transparent for tax purposes. CARF provides for the automatic exchange of cryptoasset information by governments on an annual basis.  

In February 2025, ICAEW announced that it will work with six other bodies to help RCASPs, cryptoasset users and HMRC respond to the challenges posed by the UK’s implementation of CARF. Learn more about the implications of CARF by listening to a recent episode of ICAEW’s Tax Track podcast.  

RCASPs 

From 1 January 2026, RCASPs operating in the UK will need to collect and report information on cryptoasset users who are resident in the UK or in another jurisdiction that is signed up to CARF. The first report, which will cover the period from 1 January 2026 to 31 December 2026, must be submitted to HMRC by 31 May 2027.  

HMRC has published guidance to help RCASPs prepare for the new rules. The guidance explains: 

• how to determine if a business is a RCASP;
• the information RCASPs will need to collect from cryptoasset users; and
• the RCASP’s reporting obligations.  

Cryptoasset users 

HMRC’s guidance for cryptoasset users sets out the information that the user will need to give to the RCASP, including their tax identification number. It explains that HMRC will use the information to link the person’s cryptoasset activities to their tax records to ensure they pay the correct amount of tax. A penalty of up to £300 may be charged where the person fails to provide the information or gives inaccurate information.  

The income tax self assessment tax return for 2024/25 includes new boxes for reporting cryptoasset gains and losses. Read more about this and other changes to the 2024/25 tax return in a recent ICAEW article.