Just 240 people made over half of Britain’s taxable crypto gains

UK taxpayers reported £1.38 billion in taxable cryptoasset gains in the 2024–25 tax year, HMRC said Aug. 27 in its first-ever breakdown of crypto capital gains, with 240 individuals accounting for £717 million of that total.

The move follows the UK’s implementation of the Cryptoasset Reporting Framework (CARF) from January 2026. Developed by the Organisation for Economic Co-operation and Development (OECD), the framework requires cryptoasset service providers to collect and report information about their customers to tax authorities.

HMRC’s cryptocurrency crackdown targets undeclared gains

The latest figures released by the Labour government show the scale of taxable cryptoasset gains already being reported in the UK.

During the 2024 to 2025 tax year, 17,600 individuals reported a combined £1.38 billion in taxable capital gains from cryptoassets. That represents an average reported gain of about £78,000 per individual.

At the top end of the market, 240 people reported more than £1 million each in capital gains from cryptoassets during the same tax year. Collectively, those individuals accounted for £717 million of the reported gains.

The figures help explain why the government is strengthening its cryptocurrency crackdown and seeking more information from cryptoasset service providers.

James Murray MP, Financial Secretary to the Treasury and Paymaster General, said the government wanted taxpayers to understand their responsibilities when making gains from digital assets.

“Taxes are due on cryptoasset gains just like any other gains, and we want to make sure people making gains from crypto know about what taxes they owe.” — James Murray MP, Financial Secretary to the Treasury and Paymaster General

He said the work was also connected to the wider government effort to reduce the tax gap and ensure taxpayers contribute appropriately to public services.

Cryptoasset providers face new reporting obligations

Under CARF, cryptoasset service providers will be required to report customer information to tax authorities. HMRC is scheduled to begin receiving the data from January 2027.

The reporting framework represents a major development in the UK’s cryptocurrency crackdown, because tax authorities will have access to information supplied by platforms and other cryptoasset service providers rather than relying solely on taxpayers to disclose their activities.

The rules are part of an international effort to establish a more consistent system for reporting cryptoasset transactions and related tax information.

Providers that fail to comply with the reporting requirements could face penalties of up to £300 per user, adding a financial consequence to the new obligations.

For crypto businesses operating in the UK, compliance with the framework will therefore become an important part of their responsibilities as the cryptocurrency crackdown expands beyond traditional financial reporting.

HMRC urges crypto users to check their tax position

HMRC has also used the introduction of the new rules to remind cryptocurrency holders that reporting obligations do not begin only when the new data-sharing system becomes fully operational.

John-Paul Marks, HMRC’s Permanent Secretary and Chief Executive, said taxpayers should take steps to understand their obligations.

“We want to make it as easy as possible for people to understand and meet their tax obligations when it comes to cryptoassets.” — John-Paul Marks, HMRC Permanent Secretary and Chief Executive

Marks added that the arrival of international reporting requirements makes it increasingly important for taxpayers to review whether they have paid the appropriate amount of tax.

“As new international reporting rules come into force, it’s more important than ever for people to check they are paying any tax owed.” — John-Paul Marks, HMRC Permanent Secretary and Chief Executive

The message forms a central part of the government’s cryptocurrency crackdown: cryptoasset ownership itself is not presented as the issue, but income and gains that are subject to tax must be properly declared.

What crypto holders need to do

Individuals who have taxable income or gains from cryptoassets can disclose unpaid tax through HMRC’s Crypto Disclosure Service on GOV.UK.

Cryptoasset holders must also declare income or gains above the applicable tax-free allowance for the 2025 to 2026 tax year through their Self Assessment tax return and pay any tax due by January 31, 2027.

That deadline is particularly significant as HMRC prepares to begin receiving information from cryptoasset service providers under CARF.

The combination of taxpayer reporting requirements and third-party information supplied by service providers gives the cryptocurrency crackdown a broader reach than previous approaches that depended primarily on voluntary disclosure.

The government’s figures also suggest that significant sums are already being generated through cryptoasset gains. With £1.38 billion in taxable capital gains reported by 17,600 individuals in the 2024 to 2025 tax year, HMRC is seeking to ensure that taxable activity remains visible as the digital-asset market develops.

As CARF takes effect internationally and HMRC prepares to receive data from January 2027, the UK’s approach signals a move toward greater transparency around cryptocurrency ownership, transactions and taxation.

The cryptocurrency crackdown therefore represents not a ban on cryptoassets, but a tightening of the tax reporting framework around them, with HMRC seeking better information to identify undeclared liabilities and ensure taxpayers meet existing obligations.