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The federal government acquired 8.4% much less in Capital Positive aspects Tax receipts in 2025 regardless of tax rises, HM Income and Customs knowledge has discovered.
The annual exemption from the tax has risen from £12,300 in 2022/23 to £3,000 in 2024/25.
Within the October 2024 Price range in the meantime the decrease charge of Capital Positive aspects Tax was raised from 10% to 18%, whereas the upper charge climbed from 20% to 24%.
Nevertheless the federal government acquired £13.646 billion from capital positive factors in 2025, falling from £14.9 billion in 2024.
Jason Hollands, managing director at wealth administration agency Evelyn Companions, stated: ‘This marked lower in Capital Positive aspects Tax receipts signifies that taxpayers are swerving this and the earlier Authorities’s crackdown on capital positive factors by sitting tight and deferring disposals, suggesting the futility of over-taxing traders and enterprise house owners.
‘The CGT knowledge from not simply right now, however the previous few years and thru historical past, means that traders both deliver ahead selections forward of anticipated adjustments or are deterred from crystallising positive factors afterwards, or each.
“This exposes the difficulty with growing the CGT burden: traders will change their plans and behavior accordingly to keep away from paying tax the place they really feel it’s too excessive. In lots of instances, a extra aggressive tax setting results in decrease slightly than greater revenues.”
Hollands added: “Certainly, the one vital consequence is more likely to have been distorting and disincentivising results on funding and enterprise selections.
“The remainder of this 12 months’s CGT take is price watching as it is going to begin to reveal the results on traders and enterprise house owners of the Chancellor’s improve to CGT charges in her first Price range on 30 October 2024, which noticed an instantaneous rise in CGT charges come into impact that day.
“Except non-exempt property disposals the place taxable positive factors must be reported and CGT paid inside 60-days of completion, capital positive factors on different belongings are usually disclosed by way of self-assessment and have a tendency to lag longer within the knowledge.
“So whereas this receipts knowledge reveals a lot of the affect of the decrease annual exemptions, and better CGT charges on property traders, January and February 2026 would be the key months to look at.
“In abstract, the information doesn’t bode nicely for the Chancellor’s hopes that her CGT charge hikes will bolster the general public purse over the approaching years.”
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