UK tax data: 240 crypto investors reported over £1m in gains
HMRC data reveals 240 filers each reported over £1m in crypto gains in 2024-25, the first year with a dedicated tax section. The tax authority also sent 81,000 nudge letters, up 25%.
HM Revenue and Customs said Thursday that 240 UK taxpayers each reported more than £1 million ($1.36 million) in crypto capital gains during the 2024-25 tax year.
The 2024-25 period was the first in which HMRC included a dedicated crypto capital gains section on Self Assessment returns. Previously, crypto gains were reported under the broader capital gains category, the department said in its official statistics.
Across 17,600 individuals who filed taxable crypto gains, HMRC recorded £13.8 billion ($18.76 billion) in total disposal proceeds and £1.38 billion ($1.87 billion) in total gains. The average gain per filer was £78,000 ($106,000). The 240 millionaire-level filers accounted for £717 million ($974 million) of the total.
Separately, HMRC sent 81,000 warning letters to crypto investors it suspects underpaid taxes in the past year, up 25% from 65,000 a year earlier, according to accountancy firm UHY Hacker Young. These "nudge" letters give recipients a chance to disclose underpaid tax before a formal investigation, the firm said in a report last week. HMRC sent 27,714 such letters in 2023-24.
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 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.
"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."
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.
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