The UK government’s first official release of taxable crypto asset gains found that 240 people each reported more than £1 million in capital gains during the 2024–25 tax year. HM Revenue and Customs (HMRC), the country’s tax authority, published the figures on Aug. 27, showing that the group declared a combined £717 million.
The findings are part of HMRC’s annual Capital Gains Tax statistics, which now feature a dedicated table covering crypto asset taxpayers, disposal proceeds and reported gains. HMRC said:
“It is the first time HMRC has published this specific data, following the introduction of a dedicated part of the Self Assessment return for cryptoasset capital gains.”
Across the broader taxpayer base, 17,600 individuals reported £13.8 billion in crypto asset disposal proceeds and £1.38 billion in taxable gains, averaging around £78,000 per person. The report also found that roughly 87% of people declaring taxable crypto gains were male, compared with about 13% who were female.
Crypto Sales, Swaps and Spending May Trigger Tax Obligations
Crypto asset disposals can cover token sales, swaps between cryptocurrencies, purchases of goods or services using digital assets, and transfers to another person outside certain exemptions. Crypto earned through employment, self-employment, mining, staking or lending may also count as taxable income under broader cryptocurrency tax rules.
HMRC has stepped up direct outreach to investors whose reported tax affairs may not fully match their cryptocurrency activity. The agency sent 81,000 crypto tax letters over the previous 12 months, according to accountancy group UHY Hacker Young on Aug. 20. That figure marks a 25% increase from roughly 65,000 and is nearly three times the 27,714 letters sent during the 2023–24 tax year.
Financial Secretary to the Treasury and Paymaster General James Murray said the figures support efforts to improve tax compliance and raise awareness among people making profits from crypto asset transactions. He said that cryptoasset gains are subject to tax like other gains and stressed the need to ensure people earning profits from crypto understand their tax obligations. He added:
“This important work is supporting the Government’s efforts to close the tax gap, so that everyone pays their fair share towards our vital public services.”
Separate reforms will change the tax treatment of certain decentralized finance (DeFi) transactions from April 6, 2027. Under HMRC’s planned rules for crypto lending and liquidity pools, capital gains tax will generally be deferred until an economic disposal occurs, with the government estimating that around 700,000 individuals could face the revised treatment.
Global Reporting Will Expand HMRC’s Crypto Data
The United Kingdom began adopting the Organisation for Economic Co-operation and Development’s Cryptoasset Reporting Framework in January. Under HMRC’s crypto asset user and transaction reporting rules, service providers must submit their first reports between Jan. 1 and May 31, 2027, covering eligible customer details and transactions recorded during the 2026 calendar year.
Providers must collect information on all users but only report transaction summaries for customers who are tax residents of participating jurisdictions. Inaccurate, incomplete, unverified, late or missing submissions can lead to penalties of up to £300 per user. Meanwhile, international information exchanges will give HMRC greater insight into crypto activity carried out through providers based outside the United Kingdom.
Taxpayers with undeclared crypto income or gains can use HMRC’s Crypto Disclosure Service, while gains above the tax-free allowance for the 2025–26 tax year must be reported through a Self Assessment return by Jan. 31, 2027, with any tax due paid by the same deadline. HMRC estimated that its crypto compliance and education efforts brought in an additional £168 million in capital gains tax during 2024–25.
“We want to make it as straightforward as possible for people to understand and meet their tax responsibilities when dealing with cryptoassets,” HMRC Permanent Secretary and Chief Executive John-Paul Marks said. He noted that expanded international reporting makes it increasingly important for taxpayers to review their crypto asset tax obligations before concluding:
“As new international reporting rules come into force, it’s more important than ever for people to check they are paying any tax owed.”
