"This marked decrease indicates that taxpayers are swerving the crackdown on capital gains by sitting tight and delaying disposals. History shows that when CGT is increased, investors either bring decisions forward ahead of changes or are deterred from crystallising gains afterwards - or both. In many cases, more aggressive taxation leads to lower, not higher, revenues."
"futility of over-taxing investors"
"The main consequence appears to have been distortion and disincentives to investment and business decisions."
HM Revenue and Customs figures show capital gains tax receipts were £13.646 billion in 2025, down from £14.900 billion in 2024, an 8.4% decline. Wealth managers interpret the fall as investors and business owners increasingly deferring disposals in response to a tougher tax environment. The CGT annual exemption was reduced from £12,300 in 2022-23 to £3,000 in 2024-25. Final revenue figures show CGT raised £16.93 billion in 2022-23, £14.50 billion in 2023-24 and £13.06 billion in 2024-25, with the downward trend continuing. Higher CGT rates announced on 30 October 2024 came into effect immediately, with much impact likely to appear later as gains are realised.
Read at Business Matters
Unable to calculate read time
Collection
[
|
...
]