CGT receipts soar 89% to hand £25bn to Treasury

By the Editorial Team · Friday, August 28, 2026

The UK Treasury collected a record £24.2 billion in capital gains tax for 2024/2025, driven by rate increases introduced in the October 2024 Budget and increased taxpayer participation. However, experts warn this surge may be temporary due to taxpayers accelerating gains before the hike, posing challenges for sustained revenue and future fiscal planning.

The UK Treasury reported a record £24.2 billion in capital gains tax (CGT) receipts for the 2024/2025 tax year, marking an 89 percent increase compared to the previous year. This surge followed the implementation of higher CGT rates introduced during the October 2024 Budget, which increased the rate from 10 to 18 percent for basic-rate taxpayers and from 20 to 24 percent for higher-rate taxpayers. The rise in the tax take has been attributed both to these rate increases and to earlier speculative activity by investors and landlords ahead of the Budget announcement.

The total number of individuals paying CGT also reached a record high, rising by 45 percent to 584,000 taxpayers in the 2024/2025 fiscal year. Former Chancellor Rachel Reeves had pushed for these hikes as part of efforts to bolster public finances under the Labour government.

Despite the record collections, tax experts caution that the spike in CGT receipts may be temporary. Elizabeth Bradley, a tax specialist at law firm BCLP, noted that some taxpayers accelerated disposals prior to the Autumn Statement to avoid higher rates, while others might delay realizing gains for several years. As a result, the current increase may not translate into sustained higher revenues over the medium term.

The possibility of a future decline in CGT receipts poses a potential challenge for Chancellor John Healey, who is considering whether to raise rates again in his first Budget slated for October 2025. If tax revenues weaken, it could limit fiscal flexibility and require alternative measures to increase government income.

Her Majesty’s Revenue and Customs (HMRC) acknowledged that the combination of higher rates and pre-Budget disposals contributed to the record figures. However, analysts remain cautious about the durability of this revenue boost, pointing to behavioral responses by taxpayers aimed at mitigating their tax liability.

The developments come amid ongoing debates within the government over tax policy and fiscal strategy as Labour seeks to manage public finances while balancing economic growth and investor confidence.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.