HM Revenue and Customs has recorded 17,600 taxpayers with taxable crypto gains in 2024-25, generating £1.38 billion in total reported gains. According to HMRC statistics published on August 27, the agency recorded 240 investors who reported gains above £1 million each, accounting for £717 million of the total gains. As per HMRC's latest Capital Gains Tax publication, these 240 crypto millionaires reported just over half of all crypto gains declared to the department that year. Across all individuals who declared taxable crypto disposals, the average gain stood at £78,000. The 2024-25 tax year marked the first time Self Assessment returns contained a separate section for reporting crypto capital gains, providing HMRC with dedicated breakdown data for the first time.
The statistics revealed a heavily male-dominated group among those declaring taxable crypto gains. According to HMRC data, approximately 87% of individuals reporting cryptoasset gains were men, while women accounted for about 13%. Crypto disposals covered by Capital Gains Tax include selling assets, exchanging cryptocurrencies, using crypto for goods or services, or giving assets to another person outside exempt transfers. The agency's compliance and education activity related to cryptoassets generated an estimated additional £168 million in Capital Gains Tax during 2024-25. Financial Secretary to the Treasury James Murray emphasized that "Taxes are due on cryptoasset gains just like any other gains."
While HMRC recorded the crypto gains, the agency has simultaneously increased enforcement activities against potential tax underpayments. According to accountancy firm UHY Hacker Young, HMRC sent approximately 81,000 warning letters to crypto investors suspected of underpaying taxes during the previous 12 months, representing a 25% increase from the roughly 65,000 letters sent a year earlier. The firm expects enforcement activity to increase once HMRC gains access to information collected from crypto businesses in other countries through the Crypto-Asset Reporting Framework.
HMRC's access to investor information is set to expand significantly through the Organization for Economic Cooperation and Development's Crypto-Asset Reporting Framework (CARF). The UK began implementing CARF in January 2026, with HMRC expected to start receiving customer information collected by cryptoasset service providers in 2027. The framework is designed to enable participating jurisdictions to exchange information about crypto users and their transactions, with the UK expected to automatically receive information from crypto exchanges in 52 jurisdictions from May 31, 2027, and another 15 jurisdictions in 2028. However, as reported by blockchain analytics firm Chainalysis, CARF covers only 14% of on-chain taxable activity worldwide, with decentralized exchange trades, peer-to-peer transfers, and other transaction types making up the remaining 86%.
The UK's crypto tax data provides context within the global digital asset landscape. According to Chainalysis, UK taxable crypto activity reached $19.4 billion in 2025, ranking fourth globally behind only the United States, Germany, and China. This total breaks down into $6.0 billion of gains, $3.3 billion of income, and $10.1 billion of payments. The firm noted that its approach is conservative and represents a lower boundary, as it covered only six blockchains and did not account for activity on centralized exchanges or across all transaction types. Despite these limitations, the data underscores the UK's significant position in the global crypto economy and the substantial tax implications for investors.
