Capital Gains Tax (CGT) receipts in the UK hit a record $22.2 billion in the 2025-2026 fiscal year, significantly surpassing previous highs and the Office for Budget Responsibility's (OBR) forecast of $20.3 billion. This figure represents an almost 40% increase from the prior fiscal year when combined with inheritance tax, contributing to a total of over $30 billion in wealth taxes. The increase is largely attributed to higher CGT rates implemented in the Autumn Budget 2024 by Chancellor Rachel Reeves, as well as the prolonged freeze on CGT rate thresholds and allowances, which pulls more individuals and businesses into higher tax brackets due to inflationary asset value increases.
The record CGT haul was a major factor in the UK government achieving a record January surplus of $30.4 billion, nearly double the $15.4 billion from January 2025. In January 2026 alone, CGT receipts reached nearly $17 billion, a 69% increase from January 2025. This surge is also linked to investors disposing of assets in anticipation of the rate increases after April 2024, and continued strong investment markets leading to bigger gains. Some analysts also point to buy-to-let landlords selling properties ahead of new Renters Rights legislation as a contributing factor.
The OBR has since revised its projections for CGT receipts upwards, expecting them to reach $27.3 billion by the 2029-30 tax year. While this is positive for the Treasury, industry experts, such as Marc Acheson from Utmost, note that this record tax burden may negatively impact the UK's competitiveness and has led to increased demand for financial advice. Critics also highlight that the abolition of indexation allowance in 2008 means taxpayers are paying higher rates on inflationary gains rather than just real growth.
