Latest annual UK tax data shows 240 people reported more than £1 million in crypto capital gains

HM Revenue and Customs, the UK's tax authority, said on Thursday that 240 people reported more than £1 million ($1.36 million) each in crypto capital gains during the 2024-25 tax year. 

According to the department's official statistics, 17,600 individuals filed taxable crypto asset capital gains, reporting £13.8 billion ($18.76 billion) in disposal proceeds and £1.38 billion ($1.87 billion) in total gains.

The 2024-2025 tax year was the first where HMRC included a dedicated section for crypto capital gains on Self Assessment tax returns. Crypto gains were previously reported as part of broader capital gains section.

The average gain per individual was £78,000 ($106,000), with the millionaire cohort accounting for £717 million ($974 million) of the total, HMRC said. 

The data comes as UK crypto investors face increased scrutiny from the tax authority. HMRC sent 81,000 warning letters to crypto investors it suspected had underpaid taxes in the past year, up 25% from 65,000 a year earlier, according to accountancy firm UHY Hacker Young.

The letters, known as "nudge" letters, give recipients an opportunity to disclose underpaid tax before an investigation, the firm said in a report last week. HMRC sent 27,714 such letters in 2023-24.