Capital gains tax take soars to record high of £24.2bn - but one off 'sugar hit' leaves public finances on shaky ground

See more This is Money on Google - save us as a Preferred Source Updated: 07:47 EDT, 27 August 2026 The Government raked in record capital gains tax receipts as Labour’s tax hikes on businesses continue to prop up the public finances.But experts warn that the tax take could fall in the coming years as investors and landlords change their behaviour to mitigate their annual bill.The tax office collected £24.2billion in the 2024 to 2025 tax year, an 89 per cent increase from the previous year as the hike to the main rates of CGT took effect midway through the year.Former Chancellor Rachel Reeves heaped further pressure on businesses in her October 2024 Budget, raising rates from 10 to 18 per cent for basic-rate taxpayers, while higher-rate taxpayers faced a 24 per cent levy on disposals from 20 per cent previously. Andy Burnham and his new Chancellor will need to find more headroom if CGT receipts fallHMRC said that speculation in the lead-up to the Budget also contributed to the staggering increase in the Government’s CGT receipts.Elizabeth Bradley partner at law firm BCLP, said the meteoric rise in CGT liabilities might offer 'short-term relief, but it may be a sugar hit caused by forestalling.' She added: 'If today’s exceptional spike reflects forestalling before the 2024 Autumn Budget, the behavioural response to potential CGT rate changes may now shift.' A decline in the tax take would leave new Chancellor John Healey scrambling to find a way to increase his fiscal headroom. CGT is levied on profits from assets ranging from shares to second homes, buy-to-let properties and personal possessions.Traditionally, CGT rates are applied at lower rates than income tax, because profits tend to come from people taking a risk - whether an entrepreneurial one or an investment one.The total number of taxpayers jumped 45 per cent in the 2024/25 tax year to an all-time high of 584,000 following consecutive yearly reductions to the tax-free allowance.In the 2024 to 2025 tax year, the number of taxpayers with gains above the previous year’s thresholds of £6,000 for individuals and £3,000 for trusts also increased by 105,000.A small number of taxpayers bore the brunt of changes to rates, with 45 per cent of receipts coming from those who made gains of £5million or more, representing less than one per cent of total CGT taxpayers each year.That saw those in London and the South East accounting for around half of total capital gains and liabilities.The early disposal of assets, however, means overall receipts in the coming years could fall, particularly if the wealthy flee the UK to avoid higher taxes.Pete Fairchild, National Head of Private Clients at tax firm Crowe said: ‘The concerns over rising Capital Gains Tax rates have no doubt led many people to bring forward a transaction and sell an asset earlier than expected. Whether the rate ultimately increased, the government has collected tax anyway.He added: ‘While cabinet ministers will possibly pat themselves on the back for achieving this outcome, some words of caution – the trend of wealthy people leaving the UK continues because of these measures, not helped with further concerns about the potential of an exit tax being brought in.’Bradley added: 'Some taxpayers could accelerate disposals ahead of the forthcoming Autumn Statement from the new Chancellor, while others may simply defer gains for years — a pattern seen repeatedly after past CGT reforms. Either way, today’s rise may not translate into stronger receipts for the rest of this Parliament.' SAVE MONEY, MAKE MONEYUp to £250 cashbackUp to £250 cashback2.5% cashback when investing at least £2004.61% cash Isa4.61% cash IsaTrading 212: 1.01% fixed 12-month bonus£200 Sipp cashback£200 Sipp cashbackFund a pension with at least £20,000Up to £150 cashbackUp to £150 cashbackOpen a savings account with at least £5,000Welcome bonusWelcome bonusGet up to £200 when you invest £100Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Terms and conditions apply on all offers.