HMRC reports 240 UK crypto investors declared over £1 million in gains each
In brief
- 240 individuals reported over £1 million each in crypto capital gains; 17,600 filers disclosed £1.38 billion total
- HMRC sent 81,000 warning letters to suspected tax evaders, up 25% year-over-year
- UK implementing OECD framework; automatic crypto investor data exchange begins May 2027
- First year HMRC included dedicated crypto section on Self Assessment tax returns
- Taxable events include selling, swapping, paying with crypto, and certain gifts
Scale of reported gains
The data paints a striking picture of crypto wealth concentration. 17,600 individuals filed taxable crypto asset capital gains, reporting £13.8 billion in disposal proceeds and £1.38 billion in total gains. The millionaire cohort — those 240 people — accounted for £717 million of that total, roughly half the gains reported by all filers combined.
The average gain per individual was £78,000. That figure masks the skew: most filers reported modest gains, while a small number captured outsized returns.
The figures cover individuals who made Capital Gains Tax-liable disposals of cryptoassets including bitcoin, ether, and dogecoin. Selling crypto, exchanging one cryptoasset for another, using crypto to pay for goods or services, and certain gifts can trigger taxable events.
HMRC enforcement escalation
The tax authority is tightening its grip on undisclosed gains. 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. The letters, known as "nudge" letters, give recipients an opportunity to disclose underpaid tax before an investigation.
That represents a sharp acceleration. HMRC sent 27,714 such letters in 2023-24, meaning the volume nearly tripled in a single year.
Automatic reporting framework ahead
The real enforcement shift comes next. The UK began implementing the OECD's Cryptoasset Reporting Framework in January 2026. HMRC will start receiving customer data from crypto asset service providers in 2027.
From May 31, 2027, HMRC is expected to automatically receive information on UK residents from crypto exchanges in 52 jurisdictions. Another 15 jurisdictions are expected to begin providing information in 2028. That data flow will give HMRC unprecedented visibility into cross-border trades and holdings, making it far harder for investors to hide unreported gains.
