UK Releases First Report on Cryptocurrency Taxation: £717m in Gains Declared
According to the UK government's first official report on taxing cryptocurrency gains, over 240 individuals declared capital gains exceeding £1 million in the 2024-25 tax year. The total reported capital gains amounted to £717 million, accounting for more than half of the £138 billion in reported crypto gains and £13.8 billion in taxable profits declared by 17,600 individuals.
HMRC (Her Majesty's Revenue and Customs) stated that 87% of those reporting crypto gains were male, while 13% were female. The average capital gain per person was approximately £78,000. HMRC also reported a 25% increase in the number of cryptocurrency tax-related notices sent to taxpayers over the past 12 months.
UK Financial Secretary and Chief Secretary to the Treasury James Murray emphasized that crypto gains are subject to taxation like other income. To address tax obligations, HMRC is set to adjust its approach to taxing certain DeFi transactions from April 6, 2027, affecting an estimated 700,000 individuals.
The HMRC estimates that its efforts in promoting tax compliance and education have generated an additional £168 million in capital gains tax revenue for the 2024-25 year.