HM Revenue & Customs (HMRC) has released its inaugural official figures on cryptoasset capital gains, revealing that a small cohort of individuals accounts for a disproportionately large share of the gains. For the 2024-25 tax year, 240 individuals each declared over £1 million in cryptoasset capital gains, amassing a total of £717 million. This group, representing fewer than 2% of all crypto taxpayers, was responsible for more than half of the total reported crypto gains (£1.38 billion) and disposal proceeds (£13.8 billion).
The data, gathered through a new dedicated section on the Self Assessment return for cryptoasset disposals, also highlights significant demographic trends. The 25-44 age group, comprising 54% of crypto taxpayers, accounted for 71% of all crypto disposal proceeds. This contrasts sharply with general capital gains taxpayers, where only 17% fall into this age bracket. Men were the dominant demographic among crypto taxpayers, making up 87% of those reporting gains and booking 93% of the total gains.
Conversely, the majority of crypto taxpayers—65%—reported gains below £25,000. These smaller gains collectively represented just 7% of total crypto gains and 8% of disposal proceeds, underscoring the concentration of wealth within the UK’s cryptoasset market.
In the broader financial landscape, total capital gains in Britain reached a record £127 billion in the 2024-25 tax year, generating £24.2 billion in tax. While significant for those involved, the tax contributions from cryptoassets remain a marginal component of the UK’s overall capital gains tax revenue.
Looking ahead, the UK is set to enhance international tax transparency with the implementation of the OECD’s Cryptoasset Reporting Framework. This framework will mandate crypto service providers to share customer data with tax authorities, with HMRC beginning to receive this information in 2027. Non-compliant providers face penalties of up to £300 per user.
James Murray, Financial Secretary to the Treasury, acknowledged HMRC’s efforts in providing guidance and outreach on cryptoasset obligations, which he stated resulted in an additional £168 million in Capital Gains. The specific period for this additional revenue was not detailed.
Certainties remain limited regarding the precise tax revenue generated solely from cryptoassets, as these liabilities are not itemized separately from other assets taxed at main rates. Furthermore, the exact timeframe for the £168 million in additional Capital Gains attributed to HMRC’s outreach is not specified.
For the 2025-26 tax year, gains exceeding the annual allowance must be reported by 31 January 2027. The Treasury also intends to defer capital gains tax on Decentralized Finance (DeFi) lending and liquidity pool deposits until such assets are genuinely disposed of.
Why This Matters
The materials describe a narrow update: HMRC’s first official figures on cryptoasset capital gains for the 2024-25 tax year show that 240 individuals declared over £1 million each in gains, totaling £717 million. The exact amount of tax revenue generated specifically from cryptoassets is not separated from other assets taxed at main rates.
Broader Context
Source materials place the factual news in this context: Taxes are due on cryptoasset gains just like any other gains.
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