UK – CRS (Amendment) Regulations, 2025 

FAQs 

The OECD has now introduced the Modernised Common Reporting Standard (“CRS 2.0”), representing the most significant overhaul of the global tax transparency framework since CRS was first released. The updated standard strengthens due diligence expectations, expands reporting fields, and integrates crypto-asset–related concepts to ensure CRS remains fit for purpose in an increasingly digital financial landscape. These FAQs provide a concise overview of the key changes and outline what Financial Institutions should consider as they prepare for implementation. 

Q1. What is CRS 2.0? 

The Modernised CRS is a major update to the OECD Common Reporting Standard designed to strengthen global tax transparency and ensure the CRS keeps pace with digital finance. It introduces structural reforms, enhanced due diligence, expanded reporting fields and alignment with the Crypto-Asset Reporting Framework (CARF). 

Q2. Why did the UK implement these changes now? 

The OECD launched a global modernisation of CRS to reflect: 

• the rise of crypto-assets and digital financial products, 

• inconsistencies in global CRS implementation, 

• poor-quality reporting and missing TIN data, and 

• the need for stronger due diligence governance. 

The UK’s adoption of these measures ensures alignment with international AEOI standards and maintains the UK’s reputation for tax transparency. 

Q3. What are the most significant changes introduced by CRS 2.0? 

Key reforms include: 

• New Financial Institution categories, capturing a broader range of digital asset and e-money intermediaries. 

• Redefined financial accounts, expanding the scope of reportable products. 

• Rebuilt due diligence rules, with more prescriptive validation requirements. 

• Enhanced reporting schema, including expanded TIN data, controlling person roles, joint account flags and event-based fields. 

• Integration of crypto-asset reporting elements, aligned to CARF concepts. 

• Strengthened anti-avoidance rules to combat circumvention via digital products or fragmented ownership structures. 

Q4. Does CRS 2.0 introduce crypto-asset reporting? 

Yes, to a meaningful extent. The UK has now adopted the CRS 2.0 crypto-asset integration, which includes: 

• Reporting obligations for crypto-asset custodians. 

• Look-through requirements where crypto-assets are held indirectly. 

• Expanded definitions of financial accounts to include digital representations of value. 

This stops short of full CARF adoption but aligns CRS with CARF’s architecture. Full crypto-asset reporting remains under CARF, but CRS 2.0 ensures consistency between the two frameworks. 

Q5. How are Controlling Persons (“CPs”) rules changing under CRS 2.0? 

The modernised rules require: 

• far more granular role identification, 

• a uniform set of role descriptors for trusts and passive entities 

• clearer attribution of control and economic influence. 

This significantly improves transparency in structures HMRC has historically struggled to assess. 

Q6. What new reporting data must be captured from 2026? 

CRS 2.0 introduces numerous new data points, including: 

• Account event indicators (e.g., acquisitions, redemptions) 

• Expanded TIN metadata and validation requirements. 

• Crypto-asset classification indicators 

• Enhanced controlling person diagnostics. 

• Improved joint account linkage fields. 

• New product category flags (e-money, digital assets, custodial accounts). 

Most UK FIs will require system redesigns, not simple tweaks. 

Q7. What are HMRC’s enforcement priorities in relation to the new regulations coming into effect? 

HMRC is expected to increase focus on: 

• Correct FI classification (particularly digital-asset intermediaries). 

• Accuracy & completeness of new data fields. 

• Strengthened due diligence controls. 

• Governance evidence and internal documentation. 

• Timely remediation of errors. 

Given the expanded regime, audits are expected to increase even further.