240 crypto millionaires account for over half of Britain's taxable gains

Some 240 people declared more than £1 million each in cryptoasset capital gains during the 2024-25 tax year. The group reported £717 million in gains. The group represented fewer than 2% of the 17,600 people who declared crypto disposals. The group accounted for more than half of the £1.38 billion in total gains. The group also accounted for more than half of the £13.8 billion in disposal proceeds. About 65% of crypto taxpayers reported gains below £25,000. That group accounted for 7% of gains. That group accounted for 8% of proceeds. HMRC published the figures for the first time after Self Assessment returns added a dedicated section for cryptoasset disposals. Previously, crypto disposals were combined with other property and assets. People aged 25 to 44 made up 54% of crypto taxpayers. People aged 25 to 44 accounted for 71% of disposal proceeds. That age group accounted for 45% of gains. People aged 54 or under made up 81% of crypto taxpayers. Men made up 87% of people reporting crypto gains. Men accounted for 93% of the gains. Total capital gains reached £127 billion in 2024-25. Those gains generated £24.2 billion in tax. HMRC cannot identify how much of that tax came from crypto because cryptoasset liabilities are not separated from other assets taxed at the main rates. The UK began implementing the OECD's Cryptoasset Reporting Framework in January. Crypto service providers must provide customer information to tax authorities under the framework. HMRC will begin receiving that data in 2027. Providers that fail to comply can face penalties of up to £300 per user. James Murray, Financial Secretary to the Treasury, said taxes are due on cryptoasset gains like other gains. The Treasury plans to defer capital gains tax on DeFi lending and liquidity pool deposits until assets are genuinely disposed of. Taxpayers must report 2025-26 gains above the allowance by 31 January 2027.