UK Reveals 240 Crypto Millionaires in First Official Tax Report

First Official Tax Report Identifies 240 Crypto Millionaires

The UK government’s first official publication of taxable crypto asset gains showed that 240 people each declared more than £1 million in capital gains during the 2024-25 tax year. HM Revenue and Customs (HMRC), the country’s tax authority, released the data on Aug. 27, reporting that the group recorded £717 million collectively.

The findings form part of HMRC’s annual Capital Gains Tax statistics, which now include a dedicated table covering crypto asset taxpayers, disposal proceeds, and gains. HMRC stated:

“It is the first time HMRC has published this specific data, following the introduction of a dedicated part of the Self Assessment return for cryptoasset capital gains.”

Across the wider taxpayer population, 17,600 individuals reported £13.8 billion in crypto asset disposal proceeds and £1.38 billion in taxable gains, averaging approximately £78,000 each. The report also showed that approximately 87% of individuals declaring taxable crypto gains were male, while about 13% were female.

Crypto Sales, Swaps and Spending Can Trigger Tax

Crypto asset disposals may include selling tokens, exchanging one cryptocurrency for another, spending digital assets on goods or services, and giving them to another person outside specified exemptions. Crypto received through employment, self-employment, mining, staking, or lending may also be taxable as income under broader cryptocurrency tax rules.

HMRC has already intensified direct outreach to investors whose reported tax affairs may not reflect their cryptocurrency activity. The agency sent 81,000 crypto tax letters during the previous 12 months, accountancy group UHY Hacker Young stated Aug. 20. The figure represents a 25% increase from roughly 65,000 and nearly three times the 27,714 letters issued during the 2023-24 tax year.

Financial Secretary to the Treasury and Paymaster General James Murray said the statistics support efforts to improve compliance and increase awareness among people profiting from crypto asset transactions: “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.” He added:

“This important work is supporting the Government’s efforts to close the tax gap, so that everyone pays their fair share towards our vital public services.”

Separate reforms will change how certain decentralized finance (DeFi) transactions are treated from April 6, 2027. HMRC’s planned crypto lending and liquidity pool rules will generally defer capital gains tax until an economic disposal occurs, with the government estimating that approximately 700,000 individuals could be affected by the revised treatment.

Global Reporting Will Expand HMRC’s Crypto Data

The United Kingdom began implementing the Organisation for Economic Co-operation and Development’s Cryptoasset Reporting Framework in January. Under HMRC’s crypto asset user and transaction reporting requirements, service providers must submit their first reports between Jan. 1 and May 31, 2027, covering qualifying customer information and transactions from the 2026 calendar year.

Providers must collect details on all users and report transaction summaries only for those who are tax residents in participating jurisdictions. Inaccurate, incomplete, unverified, late, or missing submissions may generate penalties of up to £300 per user. At the same time, international information exchanges will give HMRC greater visibility into activity conducted through providers outside the United Kingdom.

Taxpayers with undeclared income or gains can use HMRC’s Crypto Disclosure Service, while amounts above the tax-free allowance for the 2025-26 tax year must be declared on a Self Assessment return by Jan. 31, 2027, with any tax owed paid then. HMRC estimated that its crypto compliance and education activity generated an additional £168 million in capital gains tax during 2024-25.

“We want to make it as easy as possible for people to understand and meet their tax obligations when it comes to cryptoassets,” HMRC Permanent Secretary and Chief Executive John-Paul Marks said. Noting that expanded international reporting increases the importance of reviewing crypto asset tax obligations, the permanent secretary concluded:

“As new international reporting rules come into force, it’s more important than ever for people to check they are paying any tax owed.”