Capital gains tax (CGT) receipts in the UK have achieved an unprecedented total of £22.2 billion for the 2025-2026 tax year. This figure greatly surpasses the previous record of £16.9 billion observed in the 2022-2023 year.
Record CGT Revenues
The latest data from HMRC indicates that CGT receipts have not only exceeded last year’s total of £13.7 billion but have also outperformed the Office for Budget Responsibility’s (OBR) Autumn Budget 2025 forecast of £20.3 billion. In March 2026 alone, CGT receipts reached £496 million, rising from £412 million in March 2025. This trend reflects ongoing upward pressure on tax revenues.
Factors Contributing to Increased Revenues
- The introduction of higher CGT rates during the Autumn Budget of 2024 has significantly expanded the tax base.
- More individuals are now subject to CGT due to increased gains from property sales, investments, and business disposals.
- Long-term freezing of CGT rate thresholds and allowances has exacerbated the issue, pushing asset holders into higher tax bands.
Marc Acheson, a global wealth specialist at Utmost, commented on the implications of these developments. He noted that the increased tax burden is concerning for the UK’s competitiveness, as individuals seek financial advice to navigate the complexities of long-term planning under these heightened CGT rates.
Future Projections
The OBR has updated its forecasts, predicting that CGT receipts could reach £27.3 billion by the end of the 2029-2030 tax year. This projection signifies a long-term trend of increasing tax revenues from capital gains, further emphasizing the ongoing impact of policy changes on individual financial responsibilities.
