UK's First Crypto Tax Report Reveals 240 Individuals Declared £717 Million in Capital Gains
The UK government has released its first report on taxable crypto asset gains, revealing that 240 individuals declared capital gains exceeding £1 million for the tax year 2024-25, totaling £717 million. This amount accounts for more than half of the total £1.38 billion declared by 17,600 individuals. The HM Revenue and Customs (HMRC) stated that 17,600 people reported crypto asset disposal gains of £13.8 billion, with an average taxable gain of approximately £78,000 per person, of which about 87% were male and 13% were female. Selling, exchanging, consuming tokens, or gifting assets may trigger tax obligations. Over the past 12 months, HMRC has sent out 81,000 crypto tax letters, an increase of 25% from approximately 65,000 letters. James Murray, the Financial Secretary to the Treasury and Director of Payments, stated that crypto asset gains are subject to tax just like other forms of income. The UK plans to adjust the tax treatment of certain DeFi transactions starting April 6, 2027, where related lending and liquidity pool transactions typically defer capital gains tax until an economic disposal occurs, affecting around 700,000 individuals. HMRC estimates that its crypto tax compliance and education activities have generated an additional £168 million in capital gains tax for the 2024-25 fiscal year.
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