For the first time, the British Revenue and Customs Authority (HMRC) separately disclosed data on capital gains from encrypted assets. A total of 17.6 million people reported the disposal of encrypted assets during the tax year, of which a small number of high-income people contributed over half of the taxable proceeds, indicating a high concentration of local encryption proceeds.
The proceeds are concentrated in the hands of a few.
According to HMRC, 240 individuals each declared more than Pound1 million in capital gains on encrypted assets, totalling Pound717 million. This group accounts for less than 2 per cent of all filers, but contributes more than half of the country ' s related taxable income.
During the same period, all filers recorded a total of Pound1.380 billion in taxable earnings, corresponding to a disposal of Pound13.8 billion. On the other side, about 65 percent of encrypted taxpayers report returns of less than Pound25 million, which together represents only 7 percent of the total.
The filing population is younger.
In terms of structure, there is a significant difference between encrypted taxpayers and the overall capital gains of the United Kingdom. Fifty-four per cent of encrypted taxpayers are between the ages of 25 and 44 years, compared to only 17 per cent of total capital gains.
In a broader caliber, 81 per cent of encrypted taxpayers are under 54 years of age. The population between the ages of 25 and 44 contributed 71 per cent of the disposal amount, but only 45 per cent of the capital gains, reflecting the group ' s more active trade, but the realization of the gains was relatively low.
2027 Start receiving Platform data
This set of data was first published separately and related to the new “encrypted disposal of assets” column in the British individual tax returns. Previously, encrypted assets were usually declared together with other property and assets, making it difficult for the outside world to observe the taxation of the market separately.
The PMRC also indicated that the implementation of the OECD Encrypted Asset Declaration Framework began in January this year. Under this arrangement, the encryption asset service provider is required to submit customer information to the tax authorities and HMRC will receive relevant data from 2027 onwards. Platforms that fail to meet their obligations are subject to a maximum fine of Pound300 per user.
James Murray, Financial Secretary, United Kingdom Treasury Department, stated that proceeds from encrypted assets were taxable under the law, as were proceeds from other assets. At the same time, the United Kingdom Treasury Department plans to postpone the time at which the capital gains tax on the DeFi loan and liquidity pool is recognized, pending the actual disposal of assets.
Additional information:For capital gains in excess of tax exemption during the 2025-26 tax year, the UK filing deadline is 31 January 2027.