Capital gains tax receipts for the 2025-26 tax year have risen to a record £22.2 billion, underscoring the sharp increase in tax collected from property sales.
The latest HMRC data shows receipts have surpassed the previous high of £16.9bn in 2022-23, as well as the £13.7bn recorded in the same period last year. They also beat the £20.3bn forecast set in the Office for Budget Responsibility’s autumn Budget 2025.
The momentum has continued into the final stretch of the tax year, with earnings of £496 million in March alone – up from £412 million a year earlier – highlighting the continued pressure on growth in CGT revenues.
Jason Hollands, managing director of wealth management firm Evelyn Partners, commented: “While this monthly receipts data gives a quick snapshot that will be refined, it suggests that around 62% more was paid to the Treasury in CGT in the 2025/26 financial year than the previous one. The significant jump in tax came in the first three months of this year, including the payment of self-assessment bills for the 2024/25 tax. Is. year.
“This suggests that the surge was driven by investors disposing of assets after April 2024, but before the expected increase in CGT rates coming in the October 2024 Budget. Before that Budget, many property-owners thought CGT rates were rising more than they were, with some Labor MPs arguing for income tax rates to be equal, so it seems that the majority of this rise in CGT revenues was is due for pre-emptive disposal in those middle months of 2024.
“Will we be back in the same place this summer and autumn? This week the Resolution Foundation – a think tank influential with the government – urged the Chancellor not to “let a good crisis go to waste” and raise taxes further as the war in the Middle East threatens to put more pressure on the public finances. With government backbenchers resistant to spending cuts and unrest in Downing Street, another summer of speculation about tax rises seems inevitable, and in the CGT Further increase cannot be ruled out.
“With taxes on capital gains, investors either make decisions before the anticipated changes or postpone crystallizing gains until later, or both. Many may now wait for a future government to bring back the CGT burden, others may be deterred from setting up businesses or investing by the higher tax environment. Any distortionary effects, and whether CGT revenues will remain higher than this recent increase, will only become clear in later years – but history, and Evidence from other countries suggests that higher taxes on investment are rarely helpful.
“Since the annual CGT exemption was cut by the previous government to just £3,000 by April 2024, there was – and remains – very little protection against CGT for investors selling property, which would have turbo-charged revenues from any pre-budget disposals in the summer of 2024. The previously cut exemption did nothing to boost CGT: final revenue data shows that CGT brought This was £16.93 billion in 2022/23, £14.50 billion in 2023/24 and only £13.06 billion in 2024/25, indicating that many investors were reluctant to sell with this low level of protection.
The OBR has since revised its forecast, with CGT receipts projected to reach £27.3 billion by the 2029–30 tax year.
Mark Acheson, global wealth expert at Atmost, said: “The higher CGT rates introduced in the Autumn Budget 2024 have brought record receipts to the Treasury as more individuals are drawn into the CGT net, with gains from property sales, investments or business disposals exceeding the lower exemption threshold.
“With the Government freezing the CGT rate cap and allowances for a longer period, inflationary growth in asset values will push more individuals and businesses into higher tax bands.
“As a result, we are likely to see continued growth in CGT revenues in the coming years.
“While this may be good news for the Treasury, this record tax burden is not good for UK competitiveness, and has increased demand for financial advice as individuals seek clarity on the implications for their long-term financial planning.”