Does Nexo report to HMRC? (2025/26 UK guide)

UK TAXREGULATIONBLOG
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Does Nexo report to HMRC? Recap UK crypto tax guide
Dan Howitt
Written by
Dan Howitt
CEO at Recap

TL;DR: Nexo has not publicly confirmed direct routine reporting to HMRC. UK users should assume their activity can become visible anyway, through the Cryptoasset Reporting Framework (CARF), HMRC information requests, the banks or other providers they use alongside Nexo, and the records needed for their own tax return. Nexo is not incorporated in the UK and we could not find it on the FCA's cryptoasset register, but neither point settles where it reports under CARF: the framework assigns reporting by tax residence, incorporation, management and any regular place of business or branch, and Nexo's public materials do not currently identify the route that applies to UK customers. What deserves at least as much of your attention is the tax: interest from the earn products is generally income, borrowing against your crypto needs its terms examined, and a liquidation is a disposal whether you wanted one or not.

This guide explains what HMRC can see of your Nexo activity, where Nexo stands with UK regulators, and how interest, borrowing, the card and swaps are taxed. It was updated in July 2026 and reflects the position at that date.

Does Nexo share data with HMRC today?

We found no public confirmation that Nexo routinely reports customer data directly to HMRC. One exchange that has publicly confirmed a historic disclosure is Coinbase, which told some UK customers in October 2020 that it would pass details to HMRC covering 2019/20 accounts that received more than £5,000 of crypto; our Coinbase article covers that episode. The legal machinery behind it applies more widely: HMRC can require bulk data from third parties under Schedule 23 to the Finance Act 2011 and can issue information notices under Schedule 36 to the Finance Act 2008. How those powers can be used against a particular provider depends on the provider's legal presence, its records and the applicable information and international-cooperation routes, and Nexo's current UK entity position is not clear from the public material we reviewed.

That does not put your activity out of sight. Every Nexo account is verified against a real identity, and transfers to and from Nexo may leave records with UK banks, regulated exchanges or other providers where you use those services. Depending on the provider and the applicable legal route, HMRC may be able to obtain relevant records from them.

How Nexo data could reach HMRC under CARF

CARF is an OECD framework under which crypto platforms report their customers to their own tax authority, and the authorities then exchange data across borders each year. The UK wrote its side into law as The Reporting Cryptoasset Service Providers (Due Diligence and Reporting Requirements) Regulations 2025, in force from 1 January 2026; our CARF explainer covers the framework's background.

A cryptoasset service provider reports in the jurisdiction determined by CARF's nexus rules: that may be where it is tax resident, incorporated, centrally managed, or has a regular place of business or branch, with a hierarchy that prevents duplicate reporting where several of those links exist. If a provider reports outside the UK, that jurisdiction's authority can exchange UK-resident data with HMRC where the required international relationship is in force.

For Nexo, the reporting route is not publicly established. Nexo Capital Inc., a Cayman Islands company, was the entity named in Nexo's January 2023 US settlement, and the Cayman Islands has its own CARF rules in force from 1 January 2026, with first reports due there by 30 June 2027. That historic US evidence does not establish which entity serves UK customers in 2026 or where that entity must report, and Nexo's public licensing page does not resolve those questions either. So the accurate conclusion is conditional: CARF can bring your Nexo data to HMRC if the entity serving you is a reporting provider within the rules and the relevant reporting or exchange route applies, and you should not assume your account is invisible in the meantime.

Your side of the process is more certain. HMRC's guidance is that UK users should expect to give their identity details to every platform they use, non-UK platforms included: full name, date of birth, home address, country of tax residence, and a tax identification number, normally your National Insurance number or UTR. The rules carry penalties for users and providers alike: a user who deliberately or carelessly fails to provide a valid self-certification can face a penalty of up to £300 under regulation 13, while reporting providers face separate penalties for due-diligence, reporting, notification, registration and record-keeping failures.

What information gets reported?

Where a platform reports under CARF, it pairs your identity with a summary of your activity. The report contains aggregate totals for the year, not a live feed of your account.

Identity dataTransaction data
Full nameTypes of transactions (exchanges, reportable transfers, spending)
Date of birthAggregate values for the year
Home addressUnits and the assets involved
Country of tax residence-
National Insurance number / UTR-

Reportable transfers cover crypto moving between you and the platform. Internal movements between accounts maintained by the same reporting provider are excluded from the transfer category, though how that applies to a movement between Nexo and Nexo Pro depends on which entity maintains each account, and HMRC's guidance notes that loan and collateral movements can themselves be reportable transfer types. What no CARF report does is work out your tax. Separating interest income from capital gains, and spotting that a liquidation was a disposal, stays your job.

When does HMRC start receiving this data?

DateWhat happens
1 January 2026The UK, the Cayman Islands and other early-implementing jurisdictions begin their first CARF reporting period.
During 2027Providers in those jurisdictions file reports covering 2026 under their local deadlines: UK providers by 31 May 2027, Cayman providers by 30 June 2027.
From 2027The first international CARF exchanges begin. Other participating jurisdictions may follow later.

Is Nexo regulated in the UK?

At the time of writing, we could not find Nexo on the FCA's cryptoasset register, and it serves UK customers from outside the UK. Its recent UK history is one of adapting rather than leaving. When the FCA's financial-promotion rules for crypto took effect on 8 October 2023, Nexo ended its exchange and card cashback and its referral programme for UK customers, and it paused taking on new UK clients while it rebuilt its onboarding. It resumed UK sign-ups on 3 September 2024, with its promotions approved by Gateway 21, an FCA-authorised approver, and UK clients now go through investor categorisation, an appropriateness assessment and cooling-off periods before they can use the platform.

Elsewhere the picture has kept moving. Nexo left the United States in December 2022 and agreed a $45 million settlement with the SEC and state regulators in January 2023 over its Earn Interest Product, then returned to the US market on 16 February 2026 in partnership with licensed American firms, with trading infrastructure provided by Bakkt. For its EEA services, Nexo says it is operating through licensed European partners, including Tangany for custody and DLT Finance for trading, while that setup rolls out. None of this history changes a UK user's position with HMRC: whatever you earned or gained on Nexo is yours to declare, whichever regulator was watching at the time.

How Nexo is taxed: interest, borrowing, the card and swaps

This is where Nexo differs most from an ordinary exchange, because its core products are earning and borrowing rather than trading.

  • Earn interest. Returns on your crypto, stablecoin or fiat balances are generally income from crypto, taxable at their sterling value on the day each payment lands, although HMRC's guidance says the treatment of a return depends on how the arrangement is structured. Nexo pays daily, so a single year can contain hundreds of small income events, and fixed-term products pay further interest on top. Income that arrives in small daily amounts is easy to overlook at filing time.
  • Borrowing against your crypto. Receiving borrowed fiat or stablecoins is not itself a crypto disposal. Moving crypto into collateral may be, though: HMRC's guidance on crypto lending and collateral says that where an arrangement transfers beneficial ownership of the tokens, that transfer is a disposal, and whether it does depends on the contract terms and how the product operates. A collateral sale or liquidation, a repayment made in crypto, or any other transfer of beneficial ownership can create a further disposal, at that day's market value, even though you never pressed sell.
  • The Nexo Card. In Credit Mode the purchase is funded by borrowing, so the card payment is not itself a disposal of your crypto, though the collateral behind the credit line needs the same beneficial-ownership analysis as any Nexo loan. In Debit Mode the result depends on what funds the payment: spending crypto or a stablecoin generally creates a disposal at its sterling value, while spending a fiat balance does not dispose of any crypto. Card cashback is not currently available to UK residents; if you received rewards in the past, keep the date, sterling value and reward terms, because the UK treatment can depend on whether a reward is a rebate or a taxable receipt.
  • Swaps and Nexo Pro trades. Exchanging one crypto for another on the main platform, and buying and selling on Nexo Pro, are disposals for capital gains tax under HMRC's share pooling rules. Moving assets between your Nexo and Nexo Pro accounts is a transfer between your own accounts rather than a sale, though it needs recording so your costs carry across.

Crypto-backed borrowing is one of the genuinely intricate corners of UK crypto tax. The treatment of a specific loan, collateral arrangement or liquidation turns on its terms, so treat this section as orientation and take professional advice on anything sizeable.

What a typical Nexo year looks like at tax time

A pattern we see often: crypto sits on Nexo earning interest for years, nothing is ever "sold", and the owner assumes there is nothing to report. Say that over 2025/26 the daily payouts added up to £350 of interest, and one ETH-to-BTC swap in the spring realised a £4,200 gain. The £350 is generally income at its value on receipt; whether any tax is due depends on your other income and the £1,000 trading and miscellaneous income allowance. The swap is a disposal: £4,200 less the £3,000 annual exempt amount leaves £1,200 chargeable, and assuming no allowable losses or fees and that the gain sits within the remaining basic-rate band, the capital gains tax is £216 at 18%. Add a liquidation during a market dip and there is a second disposal the owner never initiated. Our free crypto tax calculator gives a quick estimate for a single disposal, and our comprehensive UK crypto tax guide walks through the full rules.

Why has HMRC been sending nudge letters about crypto?

During 2024/25, HMRC posted 64,982 nudge letters to people it suspects hold crypto, against 27,713 a year earlier. The figures are HMRC's own, released under a freedom-of-information request by accountancy firm UHY Hacker Young. A letter usually means HMRC believes information it holds may not match the recipient's tax position, or that the recipient should check whether all taxable activity was declared. It is not, by itself, a formal tax assessment.

Years of small interest payments that never reached a return are the kind of gap worth checking for. If a letter arrives, act on it; our guide on responding to an HMRC nudge letter about crypto sets out the steps, and putting things right before HMRC contacts you is generally treated more leniently than waiting for an enquiry.

What should I do about undeclared Nexo gains or income?

Begin with a complete export of your history: the transaction CSV from the main Nexo platform, covering interest, swaps, card purchases, loans, repayments and any liquidations, plus your Nexo Pro records. From there, work out the income and the gains year by year, treating interest as income at its value on receipt and running every disposal through the pooling rules.

Then tell HMRC through the route that fits the year. A return still within its window can be amended up to 12 months after the filing deadline; for years beyond amendment, HMRC's Cryptoasset Disclosure Facility has handled unpaid tax on crypto since November 2023. Interest accrues on late tax and a penalty can apply, though an unprompted disclosure generally attracts a lower penalty than a prompted one, depending on the circumstances. Given how much of Nexo's tax story runs through borrowing, this is a strong case for a Recap-verified UK crypto accountant.

How Recap helps with Nexo tax

Recap turns a Nexo history into a UK tax position. Upload your transaction CSV from the main Nexo platform and Recap categorises the supported transactions: interest as income at its sterling value on the day it arrived, swaps and collateral sales as disposals through HMRC's pooling rules. The Nexo integration is currently in beta, so review the imported figures and contact support if a transaction type is unsupported or looks wrongly classified. Nexo Pro connects separately through a read-only API, and the Nexo integration page shows the setup. Recap encrypts your data on your own device, so we never see your portfolio.

Bring your Nexo history into Recap and see the interest, disposals and borrowing brought together in one report, ready to review for your tax return or share with your accountant.

References

About the Author

Dan Howitt

Daniel Howitt is the CEO and co-founder of Recap, a crypto tax calculation service. He has worked in software development for more than 10 years and has been involved in crypto since 2013 - having...

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