UK Tax Data Shows £1.38B in Crypto Gains From 17,600 Investors

UK tax authorities have identified 240 taxpayers who each reported more than £1 million, or approximately $1.36 million, in cryptocurrency capital gains during the 2024-25 tax year.

The figures come as HM Revenue and Customs (HMRC) prepares to gain broader access to information about crypto investors through new international data-sharing rules.

According to HMRC statistics published on Aug. 27, around 17,600 individuals reported taxable cryptoasset disposals during the period. Together, those transactions generated £13.8 billion ($18.76 billion) in disposal proceeds and £1.38 billion ($1.87 billion) in capital gains.

The 240 highest-earning individuals accounted for £717 million ($974 million) of the total gains reported. Across all taxpayers who declared taxable crypto gains, the average gain was approximately £78,000 ($106,000).

HMRC Introduces Dedicated Reporting for Crypto Capital Gains

The new figures mark HMRC's first dedicated breakdown of cryptocurrency-related capital gains in its annual Capital Gains Tax statistics.

The change follows an update to the Self Assessment system for the 2024-25 tax year, which introduced a separate section specifically for reporting capital gains from cryptoassets.

Previously, taxpayers generally reported cryptocurrency transactions within the broader capital gains section, making it more difficult for HMRC to isolate and analyze crypto-related activity.

Taxable crypto disposals can include selling a digital asset, exchanging one cryptocurrency for another, using crypto to purchase goods or services, or transferring assets to another person outside certain exempt transactions.

Crypto Tax Data Shows a Strong Gender Imbalance

HMRC's figures also revealed a significant gender gap among taxpayers reporting cryptocurrency gains.

Approximately 87% of individuals declaring taxable crypto gains were men, compared with around 13% who were women.

At the same time, HMRC has been expanding its crypto-focused compliance and education efforts. The agency estimated that its work in this area generated an additional £168 million in Capital Gains Tax during the 2024-25 tax year.

However, the newly released statistics focus exclusively on capital gains. Income generated through activities such as cryptocurrency mining and staking continues to be reported under existing Income Tax rules rather than through the dedicated crypto capital gains section.

For the 2025-26 tax year, UK taxpayers whose gains exceed the applicable tax-free allowance must report them through Self Assessment and pay any outstanding tax by Jan. 31, 2027.

HMRC Steps Up Crypto Tax Compliance Efforts

The release of the dedicated crypto data coincides with a broader increase in HMRC's efforts to identify potential cases of unpaid cryptocurrency taxes.

Accountancy firm UHY Hacker Young reported on Aug. 20 that HMRC had sent approximately 81,000 warning letters to crypto investors suspected of underpaying taxes during the previous 12 months.

That figure was around 25% higher than the estimated 65,000 letters sent the year before and nearly three times the 27,714 letters recorded in 2023-24.

Often referred to as "nudge letters," these notices give taxpayers an opportunity to voluntarily disclose unpaid tax before HMRC launches a formal investigation.

According to UHY Hacker Young, the tax authority is particularly focused on cryptocurrency activity during the market rally that stretched from December 2022 to October 2025, a period that may have generated significant taxable gains for investors.

CARF Will Give HMRC Greater Access to Crypto Investor Data

HMRC's ability to monitor cryptocurrency activity is expected to expand further through the Crypto-Asset Reporting Framework, or CARF, developed by the Organisation for Economic Co-operation and Development (OECD).

The UK began implementing the framework in January 2026, and HMRC is expected to start receiving customer information collected by cryptoasset service providers in 2027.

CARF is designed to facilitate the automatic exchange of information between participating jurisdictions. The data will allow tax authorities to compare investors' reported income and gains with information collected directly from crypto businesses.

The UK has been preparing for the system for several years. In March 2024, the government launched a consultation on incorporating the OECD's crypto reporting standards into the domestic tax framework, with implementation ultimately scheduled for 2026.

The UK Treasury previously estimated that the new reporting system could generate an additional £35 million in tax revenue during the 2026-27 fiscal year, rising to approximately £95 million in 2027-28.

Global Crypto Tax Reporting Rules Are Expanding

The UK is not alone in tightening reporting requirements for cryptocurrency transactions.

Crypto platforms operating in the European Union began collecting additional customer information under the DAC8 framework on Jan. 1, 2026. The rules cover data such as customer identities, tax identification numbers and transaction records, with the first full-year reports expected in 2027.

For UK residents, UHY Hacker Young expects HMRC to begin automatically receiving information from crypto exchanges operating across 52 jurisdictions from May 31, 2027. A further 15 jurisdictions are expected to begin sharing data in 2028.

Once this information becomes available, tax authorities will have a much stronger ability to compare investors' actual trading activity with the income and capital gains declared on their tax returns.

Crypto Tax Transparency Is Entering a New Phase

The latest data suggests that cryptocurrency is becoming increasingly integrated into the traditional tax and financial reporting system. HMRC's separate reporting category for crypto gains, combined with its growing use of warning letters, points to a shift from broad awareness efforts toward more targeted enforcement.

The introduction of CARF could accelerate that transition. As tax authorities begin receiving transaction and customer data directly from crypto service providers, investors will face a much smaller gap between what they report and what governments may eventually be able to verify independently.

The most important development is not simply the potential increase in tax revenue. The bigger shift is the growing integration of crypto markets into the global financial information-sharing system. For years, cryptocurrency was often viewed as operating somewhat outside traditional financial reporting structures. That perception is gradually changing.

As CARF and DAC8 expand internationally, crypto transactions may become subject to a level of cross-border transparency closer to that already seen in traditional banking and investment markets. The real challenge for regulators will be ensuring that stronger tax compliance does not come at the expense of proportionate oversight and investor privacy. For crypto investors, however, the direction is becoming increasingly clear: tax authorities are moving toward a future in which undisclosed digital asset activity will be far easier to detect.