UK Tax Authority Reveals Crypto Profit Data for the First Time

On August 27, the UK’s HM Revenue and Customs (HMRC) released standalone statistics regarding taxable profits from cryptocurrency transactions for the first time. In the fiscal year 2024-2025, 17,600 individuals reported a total of £1.38 billion in crypto gains.

Taxes are due on cryptoasset gains just like any other gains. 📈

Through our targeted work on cryptoassets, including clear guidance and social media outreach, we helped taxpayers better understand their obligations which resulted in an additional £168 million of Capital Gains… pic.twitter.com/TOdHfM87Xp

— HM Revenue & Customs (@HMRCgovuk) August 27, 2026

The overall volume of digital asset transactions reached £13.8 billion, with an average profit of £78,000 per individual.

The data covers transactions subject to capital gains tax, including the sale of digital assets, token exchanges, purchases of goods and services, and certain transfers of coins to third parties. However, gifts to spouses, civil partners, or charities are excluded.

Income from mining, staking, lending, and receiving cryptocurrencies as payment are accounted for separately under income tax and are not included in these figures.

Majority of Profits Attributed to a Small Group

A total of £717 million, or more than half of the reported profits, came from just 240 individuals, each declaring capital gains exceeding £1 million. This group represented less than 2% of all filers.

Conversely, 65% of the filers reported gains below £25,000, contributing only 7% of the total amount and 8% of the transaction volume involving digital assets.

More than half of the filers, specifically 54%, were aged between 25 and 44, while this age group accounted for 17% of all capital gains taxpayers.

Men made up 87% of the participants in the statistics, claiming 93% of the entire crypto profit reported.

During the reporting period, the total capital gain in the UK was £127 billion, with cryptocurrencies contributing approximately 1.1%. However, HMRC has not specified the exact tax revenue generated from these crypto gains, as they are taxed under the general rules.

Crypto Services to Report Data to Tax Authority by 2027

Starting January 1, 2026, the UK will implement the Crypto-Asset Reporting Framework established by the OECD. This framework requires applicable crypto services to collect information on users and their transactions.

Providers must submit their first reports to HMRC between January 1 and May 31, 2027, covering transactions from the year 2026. Penalties of up to £300 per user will apply for failure to provide information, delays, or submission of incomplete or inaccurate data.

The information obtained will be used by HMRC to identify undeclared profits and other income derived from cryptocurrencies.

In late August, the UK government announced plans to assign the Bank of England a new responsibility to support innovations in payment systems and new forms of digital currencies, including stablecoins.