UK crypto gains hit £1.38 bn as 240 investors each report over £1 m

HM Revenue and Customs (HMRC) disclosed that 17,600 UK taxpayers reported crypto disposals subject to Capital Gains Tax (CGT) in the 2024‑25 tax year, generating £1.38 billion in gains from £13.8 billion in disposal proceeds.

High‑value investors drive half of reported gains

A subset of 240 investors each recorded gains exceeding £1 million, together accounting for £717 million – roughly 52% of the total crypto CGT reported.

Average and demographic profile

• Average gain per individual: £78,000.
• Gender breakdown: about 87% male and 13% female.

Compliance activity intensifies

HMRC sent approximately 81,000 warning (nudge) letters to crypto investors it suspects of underpaying tax, a 25% increase over the previous year and nearly three times the volume in 2023‑24.

Future data collection under CARF

From 2027 the agency will begin receiving customer information from crypto‑asset service providers under the OECD Crypto‑Asset Reporting Framework (CARF), initially from 52 jurisdictions and expanding to 15 more in 2028. The data is intended to help identify undeclared gains and improve enforcement.

Tax reporting changes

The 2024‑25 tax year was the first to include a dedicated self‑assessment section for crypto capital gains, separating these from general CGT reporting. Gains above the tax‑free allowance for the 2025‑26 year must be reported by 31 January 2027.

Impact on tax revenue

HMRC estimates that its crypto‑specific compliance and education activities generated an additional £168 million in CGT for the year.