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HMRC just named its price. The UK tax authority published data showing 240 individuals each declared more than £1 million in crypto capital gains for the 2024-25 tax year — and collectively, those 240 people reported £717 million. That’s a big number. It sits inside a broader figure of £1.38 billion declared by 17,600 taxpayers across the country, which means a tiny slice of the crypto-wealthy are responsible for a massive chunk of the total.
It’s the first time HMRC has broken out specific data on taxable crypto gains at all. The agency added a dedicated section to the Self Assessment return, and the numbers that came back were striking. The gender split is pretty lopsided too: 87% of individuals reporting gains are male, 13% female. No breakdown by age or region was published. The report covers disposals in the broadest sense — selling tokens, exchanging one crypto for another, spending digital assets on purchases, or gifting them. Crypto received through employment also counts as taxable income, and HMRC wants people to know it’s watching that category too.
The compliance push is real and it’s accelerating.
81,000 Letters and £168 Million Recovered
HMRC sent 81,000 crypto tax letters over the past year. That’s a 25% jump over the previous period. The agency isn’t waiting for people to come forward voluntarily — it’s going to them. And the effort is paying off. HMRC’s crypto compliance work added £168 million to capital gains tax revenues in 2024-25. That’s not a rounding error. It’s a deliberate, structured campaign to close a gap that authorities believe is still wide open.
Taxpayers who haven’t declared gains above the tax-free allowance for 2025-26 have until January 31, 2027 to file a Self Assessment return. HMRC runs a Crypto Disclosure Service for anyone who needs to report previously undeclared gains. The window is open, basically, but it won’t stay that way.
The authority is also pulling in data from international sources. Service providers are required to collect detailed information on users who are tax residents in participating jurisdictions, and that data gets shared. For UK holders using overseas exchanges, the idea that offshore means invisible is probably outdated.
DeFi Tax Deferral and the OECD Framework
Bigger changes are coming. From April 6, 2027, new rules will shift how certain decentralized finance transactions get taxed. Under the new framework, capital gains tax on some DeFi activity will be deferred until an economic disposal actually happens. HMRC estimates around 700,000 individuals could be affected by that change. It’s a meaningful shift for anyone actively using lending protocols, liquidity pools, or staking arrangements where tokens move around without a clear sale event.
Separately, the UK is rolling out the OECD’s Cryptoasset Reporting Framework. Service providers must report transaction data covering the 2026 calendar year, with submissions due by May 31, 2027. Non-compliance carries penalties of up to £300 per user. That’s per user — so for any exchange or platform with a large UK customer base, the exposure adds up fast.
The framework is part of a coordinated international push. Countries adopting it exchange data with each other, which means HMRC’s visibility into cross-border activity is set to grow significantly. Someone using a foreign platform to hold or trade crypto isn’t automatically outside the UK tax net anymore.
UK lawmakers are also asking questions about how forthcoming crypto regulations will interact with how major banks handle regulated digital assets. No firm answers yet. The regulatory picture is still taking shape, and the relationship between traditional finance and crypto custody rules isn’t fully settled.
What’s clear is the direction. HMRC built the reporting infrastructure, collected the first real dataset, and found 240 people sitting on seven-figure crypto gains. It sent 81,000 letters. It recovered £168 million. And it’s about to get a direct feed of transaction data from service providers operating across OECD member states.
The 17,600 taxpayers who declared gains in 2024-25 are probably not the full picture. HMRC thinks so too, which is why the letter volume keeps climbing.
£1.38 billion declared. £717 million from 240 people. And a compliance machine that’s only getting bigger.
Frequently Asked Questions
How many UK crypto millionaires did HMRC identify for the 2024-25 tax year?
HMRC identified 240 individuals who each declared over £1 million in crypto capital gains, with their combined reported gains totaling £717 million.
What penalties can crypto service providers face under the OECD Cryptoasset Reporting Framework?
Service providers that fail to comply with reporting requirements face penalties of up to £300 per user for the transaction data covering the 2026 calendar year, due by May 31, 2027.
Why It Matters
This data from HMRC highlights the concentration of wealth within the cryptocurrency space, with a small group of individuals generating substantial capital gains. Such figures not only underscore the growing financial significance of crypto investments in the UK but also raise important questions about tax policy and regulatory frameworks as authorities seek to balance revenue generation with fostering innovation in the rapidly evolving digital asset market. The findings may influence future regulatory approaches and compliance measures for crypto transactions, impacting both investors and the broader market dynamics.
