Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Capital Gains Tax Receipts Reach Record High in 2024-25

Capital gains tax (CGT) receipts surged to record levels in the 2024-25 tax year, according to the latest figures from HM Revenue & Customs (HMRC). Both the total taxable gains and the number of people paying CGT increased sharply compared to the previous year.

Taxpayers reported £127.3 billion of capital gains during 2024-25, representing an 82% increase compared with 2023-24 and marking the highest amount on record. The resulting CGT liability reached £24.2 billion, an increase of 89% year-on-year. HMRC also recorded a substantial rise in the number of people paying the tax, with 584,000 taxpayers incurring CGT liabilities during 2024-25, up 45% from the previous year and another record high.

These figures are significant for the property sector, as CGT can apply when landlords and other property investors dispose of residential assets that do not qualify for private residence relief. The sharp increase in receipts follows changes to the CGT annual exempt amount in recent years. The allowance fell from £12,300 in 2022-23 to £6,000 in 2023-24, and then dropped again to £3,000 from April 2024. This reduction means more investors can incur a CGT liability when selling assets, including investment properties.

The HMRC figures cover CGT across all applicable asset classes and are not limited to property disposals. The changes to the annual exempt amount have brought more taxpayers into the scope of CGT, which is relevant for letting agents and inventory clerks monitoring trends in property transactions and landlord activity.