Latest annual UK tax data shows 240 people reported more than £1 million in crypto capital gains

HM Revenue and Customs, the UK's tax authority, said on Thursday that 240 people reported more than £1 million ($1.36 million) each in crypto capital gains during the 2024-25 tax year. 

According to the department's official statistics, 17,600 individuals filed taxable crypto asset capital gains, reporting £13.8 billion ($18.76 billion) in disposal proceeds and £1.38 billion ($1.87 billion) in total gains.

The 2024-2025 tax year was the first where HMRC included a dedicated section for crypto capital gains on Self Assessment tax returns. Crypto gains were previously reported as part of broader capital gains section.

The average gain per individual was £78,000 ($106,000), with the millionaire cohort accounting for £717 million ($974 million) of the total, HMRC said. 

The data comes as UK crypto investors face increased scrutiny from the tax authority. HMRC sent 81,000 warning letters to crypto investors it suspected had underpaid taxes in the past year, up 25% from 65,000 a year earlier, according to accountancy firm UHY Hacker Young.

The letters, known as "nudge" letters, give recipients an opportunity to disclose underpaid tax before an investigation, the firm said in a report last week. HMRC sent 27,714 such letters in 2023-24.

UHY Hacker Young expects the number of investigations into crypto traders to increase as HMRC begins receiving more information from overseas crypto businesses under new international reporting rules.

"Once HMRC has this data then tax investigations into cryptocurrency investors will be like shooting fish in a barrel," Neela Chauhan, partner at UHY Hacker Young, said. "With this data and some fairly basic AI built software, HMRC will be able to build a comprehensive list of all cryptocurrency investors that are behind on their CGT or income tax."

UK crypto tax 

The UK began implementing the OECD's Cryptoasset Reporting Framework in January 2026. HMRC said it will start receiving customer data from crypto asset service providers in 2027, including information that can help identify undeclared crypto gains.

From May 31, 2027, HMRC is expected to automatically receive information on UK residents from crypto exchanges in 52 jurisdictions, according to UHY Hacker Young. Another 15 jurisdictions are expected to begin providing information in 2028.

The HMRC figures cover individuals who made Capital Gains Tax-liable disposals of cryptoassets including bitcoin (BTC), ether (ETH), and dogecoin (DOGE). Selling crypto, exchanging one cryptoasset for another, using crypto to pay for goods or services, and certain gifts can trigger taxable events.

For the 2025-26 tax year, taxpayers with crypto income or gains above the applicable tax-free allowance must report them through Self Assessment and pay any tax due by Jan. 31, 2027.