Crypto gains in Britain were heavily concentrated among a small number of taxpayers, according to the first official figures HM Revenue & Customs has published for the sector.
HMRC said Thursday that 240 people each declared more than £1 million in cryptoasset capital gains in the 2024-25 tax year, with a combined total of £717 million.
Those 240 individuals made up less than 2% of the 17,600 people who reported crypto disposals, yet they accounted for more than half of both the £1.38 billion in gains and the £13.8 billion in disposal proceeds, according to HMRC’s statistical commentary.
Most gains sat with a very small group
At the other end of the distribution, 65% of crypto taxpayers reported gains of less than £25,000. Together, that group represented 7% of total gains and 8% of disposal proceeds.
The data is appearing separately for the first time because the U.K. Self Assessment return now includes a dedicated section for cryptoasset disposals. Previously, those transactions were grouped together with other property and assets.
Younger and more male than the broader CGT population
HMRC’s figures show crypto taxpayers look very different from the wider population of capital gains taxpayers. Some 54% were between 25 and 44 years old, compared with 17% across capital gains taxpayers overall. In total, 81% were aged 54 or under.
Taxpayers aged 25 to 44 generated 71% of all crypto disposal proceeds but only 45% of the gains. The figures indicate that this cohort traded the most, while booking a smaller share of gains relative to its trading activity.
Men accounted for 87% of those reporting crypto gains, versus 56% across capital gains taxpayers as a whole. They also recorded 93% of crypto gains.
Crypto remains a small part of the wider tax picture
Despite the attention around the sector, crypto still represents a marginal part of Britain’s broader capital gains landscape. Total capital gains reached a record £127 billion in 2024-25, generating £24.2 billion in tax revenue.
HMRC said it cannot say how much of that came from cryptoassets because crypto liabilities are not separated from other assets taxed at the main rates.
HMRC to begin receiving platform data in 2027
Under the Organisation for Economic Co-operation and Development’s Cryptoasset Reporting Framework, which the U.K. began implementing in January, service providers must hand customer information to tax authorities. HMRC will start receiving that data in 2027, and providers that fail to comply can face penalties of up to £300 per user.
"Taxes are due on cryptoasset gains just like any other gains," said James Murray, Financial Secretary to the Treasury.
Treasury also plans DeFi tax deferral
Another rule change is moving in a different direction. The Treasury plans to defer capital gains tax on DeFi lending and liquidity pool deposits until the assets are genuinely disposed of.
For the 2025-26 tax year, gains above the allowance must be reported by January 31, 2027.