The HMRC has released its first statistics on crypto profits, revealing significant taxable gains in the UK for the fiscal year 2024-2025.
On August 27, the HM Revenue and Customs (HMRC) of the UK shared its first detailed statistics on taxable profits from cryptocurrency transactions. For the fiscal year 2024-2025, 17,600 individuals reported a collective £1.38 billion in crypto gains.
"Taxes are due on cryptoasset gains just like any other gains. Through our efforts, we helped taxpayers understand their obligations, resulting in £168 million of additional Capital Gains" — HMRC.
Overall, digital asset transactions totaled £13.8 billion, with an average profit of £78,000 per individual taxpayer.
The report includes transactions subject to capital gains tax such as sales of digital assets, token exchanges, and purchases made with crypto, while excluding gifts to spouses, civil partners, or charities. Income from mining, staking, and receiving crypto as payment is categorized separately under income tax and not included in this report.
Concentration of Wealth Among Few Individuals
Notably, £717 million, or over half of the total profits, was reported by just 240 individuals, each declaring more than £1 million in capital gains. This elite group constitutes less than 2% of all filers.
In contrast, 65% of filers reported gains under £25,000, contributing a mere 7% to the overall profit tally and 8% of total transaction volume.
The demographic data shows that over half of the filers (54%) are aged between 25 and 44, with this age group making up 17% of all capital gains taxpayers. Furthermore, men accounted for 87% of the reported participants, claiming 93% of the crypto profits.
During this period, the UK's total capital gains reached £127 billion, with crypto gains representing approximately 1.1%. However, HMRC did not disclose the specific tax revenue generated from these transactions, which are taxed under standard rules.
New Reporting Framework for Crypto Services
Beginning January 1, 2026, the UK will enforce the Crypto-Asset Reporting Framework mandated by the OECD, requiring applicable crypto services to gather and report user transaction data to HMRC. The first reports will be due between January 1 and May 31, 2027, covering transactions from the year prior. Non-compliance could result in penalties of up to £300 per user for late or inaccurate submissions.
This data is crucial for HMRC to pinpoint undeclared profits and any other income linked to cryptocurrencies.
Additionally, in late August, the UK government designated the Bank of England with new responsibilities aimed at fostering innovation in payment systems and exploring new forms of digital currencies, including stablecoins.
