Britain's cryptocurrency gains are concentrated among a small group of high-value traders, according to newly released figures from HMRC.
In the 2024-25 tax year, 240 individuals each declared more than £1 million in cryptoasset capital gains, collectively reporting £717 million. This elite group represents less than 2% of the 17,600 people who reported crypto disposals, yet accounts for over half of the £1.38 billion in total taxable gains and £13.8 billion in disposal proceeds across all crypto taxpayers.
At the opposite end, 65% of crypto taxpayers reported gains under £25,000, together accounting for just 7% of gains and 8% of proceeds.
Who is trading crypto in Britain?
Crypto taxpayers differ markedly from the broader capital gains population. Some 54% are aged between 25 and 44, compared to 17% of all capital gains taxpayers. Overall, 81% of crypto traders are 54 or under.
The younger demographic is highly active but less profitable. People aged 25 to 44 generated 71% of all crypto disposal proceeds but only 45% of the gains.
The crypto trader population is also heavily male-dominated. Men accounted for 87% of those reporting crypto gains, against 56% across capital gains generally, and booked 93% of the gains.
New reporting requirements ahead
These figures appear for the first time because the Self Assessment tax return now includes a dedicated section for cryptoasset disposals, previously grouped with other property and assets.
Reporting requirements will tighten further under the OECD's Cryptoasset Reporting Framework, which the UK began implementing in January. Cryptocurrency service providers must supply customer information to HMRC starting in 2027, with penalties of up to £300 per user for non-compliance.
The Treasury is also deferring capital gains tax on certain decentralized finance activities. Capital gains tax on DeFi lending and liquidity pool deposits will be postponed until assets are genuinely disposed of. Gains above the allowance for 2025-26 must be reported by 31 January 2027.
Crypto remains marginal to the overall tax picture. Total capital gains hit a record £127 billion in 2024-25, generating £24.2 billion in tax.
