The UK government has published its first official figures on taxable crypto asset gains, showing that 240 individuals each declared more than £1 million in capital gains in the 2024-25 tax year. Combined, that group reported £717 million in gains, accounting for more than half of the £1.38 billion declared by all crypto taxpayers covered in the report.

Across the full dataset, 17,600 taxpayers reported £13.8 billion in crypto asset disposal proceeds and £1.38 billion in taxable gains. That works out to an average taxable gain of about £78,000 per person, according to the figures released by HMRC.

Who reported the gains

The report offers a first detailed look at how crypto-related tax liabilities are distributed in the UK. While 17,600 individuals declared taxable gains, a much smaller group accounted for a large share of the total, with 240 people alone reporting £717 million.

HMRC’s data also included a gender breakdown for those declaring taxable crypto gains. About 87% were male and roughly 13% were female.

Which crypto transactions can be taxable

The report outlines several kinds of crypto activity that can trigger capital gains tax. These include selling tokens, exchanging one cryptocurrency for another, spending crypto on goods or services, and transferring crypto to another person outside the available exemptions.

HMRC also noted that some crypto received through work, mining, staking, lending, or similar activity may be taxed as income under broader tax rules rather than treated only as capital gains.

HMRC expands enforcement and reporting

The tax authority said it has stepped up outreach to investors whose declared tax affairs may not match their crypto activity. As part of that effort, HMRC has already sent tens of thousands of crypto tax letters aimed at improving awareness and compliance.

HMRC estimated that its crypto compliance and education activity added £168 million in capital gains tax in 2024-25. The UK has also started implementing the OECD’s Cryptoasset Reporting Framework, which will require providers to submit initial reports on qualifying customers and transactions from the 2026 calendar year. The regime includes penalties for inaccurate or missing submissions.

The government said international information-sharing under the framework will strengthen HMRC’s visibility into crypto activity taking place outside the UK.

What changes next

Further changes are planned for April 6, 2027, when reforms affecting certain decentralized finance transactions are due to take effect. Under the plans, rules for crypto lending and liquidity pools are expected to defer capital gains tax until an economic disposal occurs.

The government said those DeFi-related changes could affect around 700,000 individuals. For taxpayers with undeclared crypto income or gains, HMRC said the Crypto Disclosure Service remains available. Amounts above the annual tax-free allowance must be declared through a Self Assessment return by Jan. 31, 2027, with any tax due payable at the same time.

Source: news.bitcoin.com