Business
Jun 20, 2026
Capital Gains Tax: Soaring Revenue and What You Need to Know
The UK's capital gains tax revenue has surged by almost 80% to £24bn in the last tax year. Changes …
The Surge in Capital Gains Tax Revenue
Less generous rules have turned capital gains tax into a 'cash machine' for the government, with income from the levy soaring by almost 80% to £24bn in the last tax year – equivalent to well over £800 a household.
How Capital Gains Tax Works
CGT is a tax on the profit you make when you sell – or 'dispose of' – something that has increased in value. It is proving to be 'a decent cash machine for the taxman', says Clare Stinton, the senior personal finance analyst at the investment platform Hargreaves Lansdown.
The Data Analysis
The £24.3bn raised in 2025-26 is up sharply on the previous year's £13.7bn haul, and more than three times the amount raised in 2017-18. The government's economics watchdog, the Office for Budget Responsibility, recently predicted that the amount CGT pulls in is likely to keep rising and will hit £35bn in 2030-31.
The Impact Analysis
Changes to the way the charge works mean more people are being pulled into the capital gains tax (CGT) net, and not only the wealthy. The tax-free allowance for CGT has been slashed in recent years: until 2022-23 it was £12,300, then it was cut to £6,000, and now it is £3,000.
The Prediction
Experts are advising consumers on legitimate ways to reduce a CGT bill. These include making full use of your Isa allowance, transferring investments between spouses or civil partners, and offsetting losses against gains. Additionally, reducing taxable income through pension contributions or charitable donations can help lower CGT bills.
#Capital Gains Tax
#UK Tax
#Government Revenue
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