HMRC flags 240 UK crypto investors with seven-figure gains as new reporting and international data loom HM Revenue & Customs says 240 UK taxpayers reported more than £1 million each in crypto capital gains in the 2024–25 tax year, part of a dataset released as the agency tightens crypto reporting and prepares to receive international exchange data. Key numbers - 17,600 individuals declared crypto disposals subject to Capital Gains Tax (CGT) in 2024–25. - Total disposal proceeds: £13.8 billion. Total reported gains: £1.38 billion. - The 240 top reporters accounted for £717 million of those gains. - Average reported gain across all declarants: about £78,000. - Gender split: roughly 87% men and 13% women among those reporting crypto gains. Why this dataset matters 2024–25 was the first tax year where Self Assessment returns included a separate section specifically for crypto capital gains, giving HMRC its first dedicated breakdown of crypto CGT. Previously, crypto disposals were lumped into the general capital gains section, making detailed analysis harder. What counts as a crypto disposal According to HMRC, disposals that can trigger CGT include: - selling a crypto asset, - swapping one cryptocurrency for another, - using crypto to pay for goods or services, - gifting assets outside certain exempt transfers. Enforcement and compliance activity HMRC says its crypto-focused compliance and education work generated an estimated additional £168 million of CGT in 2024–25. Separately, accountancy firm UHY Hacker Young reports HMRC sent about 81,000 “nudge” letters in the past year to investors suspected of underpaying tax — a 25% increase on the prior year and nearly three times the volume recorded in 2023–24. These letters give recipients a chance to disclose unpaid tax before a formal investigation. International reporting: CARF and the data wave HMRC’s capacity to detect undeclared crypto gains is set to increase sharply as the UK implements the OECD’s Crypto-Asset Reporting Framework (CARF). Key milestones and expectations: - UK began implementing CARF in January 2026; HMRC is expected to start receiving customer data from cryptoasset service providers in 2027. - UHY Hacker Young expects HMRC to automatically receive exchange data from 52 jurisdictions from May 31, 2027, with another 15 jurisdictions joining in 2028. - The Treasury earlier estimated the reporting framework could bring in roughly £35 million in 2026–27 and about £95 million in 2027–28. Industry and tax-rule context - HMRC has long treated crypto within the UK tax system and has adjusted rules for businesses and investors in recent years. - In January 2023, the government extended an investment management tax exemption to some qualifying crypto transactions involving overseas investors. - In April 2026, HMRC removed crypto exchange-traded notes (ETNs) from standard ISAs; fintech firm Stratiphy began offering crypto ETNs via Innovative Finance ISAs as an alternative tax-advantaged route. What investors should note - These figures cover capital gains only. crypto income (for example, some mining and staking rewards) is still reported under Income Tax rules. - UK taxpayers with crypto gains above the tax-free allowance for the 2025–26 year must declare them on Self Assessment and pay any tax by Jan. 31, 2027. - With international data flows and growing HMRC scrutiny, investors should ensure records are complete, report gains accurately, and seek professional advice if needed. Industry voices warn the incoming CARF data will make undeclared gains easier for HMRC to find. As one accountancy partner put it, once that information arrives, building a list of investors with unpaid CGT will be straightforward — a reminder that the era of limited visibility into crypto holdings for tax authorities is ending. Read more AI-generated news on: undefined/news