HMRC Collects a Record High of Capital Gains Tax

The latest figures from HMRC report that they have collected a record £14.3bn in capital gains tax over the 2020/2021 period. This number supersedes the previous intake high of £11.1bn in 2019/2020 by 42%. 

In 2020/2021, 323,000 taxpayers contributed to the capital gains tax bill, nearly half of whom are from London and the South East of England. 

The receipts shown by the Office of National Statistics display a continuing trend of growth over the 2020/2021 period. It is thought that the increase may be attributed to the Office of Tax Simplification’s  recommendation to bring capital gains tax in line with income tax, though this has not yet been adopted.  Another possible driver is the increasing number of private landlords selling off properties before changes to tenant legislation come into place.

Although the numbers have fallen in the first half of 2022, commentators forecast that a high CGT income may be seen again as asset prices continue to rise and the CGT annual exemption amount remains frozen until 2026.