Crypto Millionaires Dominate UK Taxable Gains
The UK's tax authority HMRC has released its first official figures on cryptoasset gains in the country. According to the data, 240 individuals declared over £1 million each in cryptoasset capital gains during the 2024-25 tax year, accounting for more than half of both the £1.38 billion in gains and the £13.8 billion in disposal proceeds.
The group is smaller than 2% of the 17,600 individuals who declared crypto disposals, but they earned a significant portion of the total gains. The majority of crypto taxpayers reported gains under £25,000, accounting for only 7% of gains and 8% of proceeds.
HMRC's data also shows that cryptoasset taxpayers are predominantly male, with 87% of those reporting crypto gains being men. Additionally, the age range of cryptoasset taxpayers is skewed towards younger individuals, with 54% aged between 25 and 44.
The upcoming changes to tax regulations will require exchanges to report customer data to HMRC from 2027 under a new OECD framework. Failure to comply may result in penalties of up to £300 per user.