Government reaps rich reward from tax changes

By the Editorial Team · Friday, August 28, 2026

The UK government raised a record £24.2 billion in capital gains tax during the 2024-25 tax year, an 89% increase driven by higher tax rates and a 45% rise in the number of taxpayers. This surge reflects both policy changes introduced by the Labour government and accelerated asset disposals ahead of the rate hike, with significant implications for investment behavior and future government funding.

The UK government collected a record £24.2 billion in capital gains tax during the 2024-25 tax year, marking an 89% increase compared to the previous year, according to data released by HM Revenue & Customs (HMRC). The number of taxpayers liable for capital gains tax rose by 181,000, or 45%, reaching an all-time high of 584,000 individuals.

Capital gains tax is levied on the profits from the sale or disposal of assets, including businesses and property. The recent surge in receipts follows changes introduced by the Labour government in its first autumn budget of 2024. These included raising the main capital gains tax rates from 10% to 18% for basic-rate taxpayers and from 20% to 24% for higher-rate taxpayers on disposals made after October 2024. HMRC also attributed the increase in revenues to cuts in certain tax reliefs implemented in previous years.

Ahead of the budget announcements, public speculation about the impending tax hike prompted many taxpayers to accelerate asset disposals, seeking to benefit from lower rates before the changes took effect. This behavior likely contributed to the significant rise in both taxpayer numbers and receipts.

In addition to traditional assets, the figures shed new light on the taxation of cryptocurrency gains. HMRC reported that 17,600 individuals realized gains from disposals of crypto assets such as Bitcoin, Ethereum, and Dogecoin, with total taxable gains amounting to £1.38 billion. Among these taxpayers, the data identified 240 cryptocurrency millionaires. The statistics also revealed a notable gender disparity, with 87% of those reporting taxable crypto gains being men.

The Treasury highlighted that the additional revenue would support government priorities, including providing support to families and businesses, backing employment, and fostering economic growth. While some observers view the increased tax revenue as a sign of effective fiscal policy, others have expressed concerns about the impact of higher capital gains taxes on investment and economic activity.

Overall, the 2024-25 tax year marks a significant milestone in capital gains tax collection in the UK, reflecting both policy changes and shifting taxpayer behavior amid evolving economic conditions.

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.