HMRC Releases First Figures on Cryptocurrency Gains, Reveals Young Male Minority Dominates Market

The UK's tax authority HMRC has released its first figures on cryptocurrency gains, revealing that in the 2024-25 tax year, 17,600 people declared £1.38 billion in taxable crypto gains.

Of these, a cluster of 240 individuals cleared more than £1 million each, taking home a total of £717 million, a staggering amount that accounts for less than 2% of all those who reported a crypto disposal.

The majority of crypto taxpayers, 65%, reported gains of under £25,000, which accounted for only 7% of the gains and 8% of the proceeds. The average gain per person was £78,000, significantly boosted by the millionaire filers.

HMRC's data shows that men made up 87% of filers and booked 93% of the total gains. The age group of 25-44 accounted for 71% of all proceeds from crypto disposals but only took home 45% of the gains, with this cohort generating the most volume but converting it to profit at a lower rate.

The tax authority sent 81,000 'nudge' letters to suspected under-payers over the past year, up 25% from about 65,000 the year before. Once the OECD's Cryptoasset Reporting Framework is fully implemented in 2028, HMRC expects to start receiving customer data from crypto service providers and will automatically pull information on UK residents from exchanges in 52 jurisdictions.