HM Income and Customs, the UK’s tax authority, mentioned on Thursday that 240 folks reported greater than £1 million ($1.36 million) every in crypto capital positive factors in the course of the 2024-25 tax 12 months.
In line with the division’s official statistics, 17,600 people filed taxable crypto asset capital positive factors, reporting £13.8 billion ($18.76 billion) in disposal proceeds and £1.38 billion ($1.87 billion) in whole positive factors.
The 2024-2025 tax 12 months was the primary the place HMRC included a devoted part for crypto capital positive factors on Self Evaluation tax returns. Crypto positive factors had been beforehand reported as a part of broader capital positive factors part.
The typical achieve per particular person was £78,000 ($106,000), with the millionaire cohort accounting for £717 million ($974 million) of the overall, HMRC mentioned.
The info comes as UK crypto traders face elevated scrutiny from the tax authority. HMRC despatched 81,000 warning letters to crypto traders it suspected had underpaid taxes previously 12 months, up 25% from 65,000 a 12 months earlier, in response to accountancy agency UHY Hacker Younger.
The letters, generally known as “nudge” letters, give recipients a chance to reveal underpaid tax earlier than an investigation, the agency mentioned in a report final week. HMRC despatched 27,714 such letters in 2023-24.
UHY Hacker Younger expects the variety of investigations into crypto merchants to extend as HMRC begins receiving extra data from abroad crypto companies underneath new worldwide reporting guidelines.
“As soon as HMRC has this knowledge then tax investigations into cryptocurrency traders will likely be like taking pictures fish in a barrel,” Neela Chauhan, accomplice at UHY Hacker Younger, mentioned. “With this knowledge and a few pretty primary AI constructed software program, HMRC will have the ability to construct a complete record of all cryptocurrency traders which might be behind on their CGT or earnings tax.”
UK crypto tax
The UK started implementing the OECD’s Cryptoasset Reporting Framework in January 2026. HMRC mentioned it’ll begin receiving buyer knowledge from crypto asset service suppliers in 2027, together with data that may assist establish undeclared crypto positive factors.
From Could 31, 2027, HMRC is anticipated to mechanically obtain data on UK residents from crypto exchanges in 52 jurisdictions, in response to UHY Hacker Younger. One other 15 jurisdictions are anticipated to start offering data in 2028.
The HMRC figures cowl people who made Capital Positive factors Tax-liable disposals of cryptoassets together with bitcoin (BTC), ether (ETH), and dogecoin (DOGE). Promoting crypto, exchanging one cryptoasset for an additional, utilizing crypto to pay for items or providers, and sure items can set off taxable occasions.
For the 2025-26 tax 12 months, taxpayers with crypto earnings or positive factors above the relevant tax-free allowance should report them by way of Self Evaluation and pay any tax due by Jan. 31, 2027.
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