There’s been a huge rise in the government’s income from Capital Gains Tax (CGT).
New figures from HM Revenue and Customs shows CGT) receipts collected just under £24.3 billion in tax year 2025/26 – up 77% compared to the previous tax year.
An analysis by business consultancy Hargreaves Lansdown shows that looking back a decade to 2015/16, and CGT receipts have soared by 244%.
Clare Stinton, senior personal finance analyst at the consultancy, says: “CGT may be payable when selling an investment, but also when gifting an investment to anyone other than a spouse or civil partner.”
She says a major driver is the sharp reduction of the annual CGT allowance, now just £3,000, down from £12,300 in 2022/23.
This means more people are pulled into paying CGT and on a bigger chunk of their gains.
At the same time, CGT rates also increased in October 2024.
The lower rate for basic rate taxpayers hiked from 10% to 18%, and the rate for higher and additional rate taxpayers rose from 20% to 24%.
Another factor in why receipts are higher is that some people likely accelerated sales of long-term assets ahead of Labour’s recent Budgets, amid speculation that CGT rates could rise – choosing to lock in rates they knew, rather than risk paying more later.
The consultancy says that when disposing of long-term assets, the gains involved can be substantial – with years of market growth and no adjustment for inflation – and can easily exceed the £3,000 allowance.
Minimising the payment requires long-term planning, it suggests.
This article is taken from Landlord Today