Record CGT receipts highlight need for stability ahead of Budget

The latest HMRC figures show CGT receipts reached a record £24.3 billion in 2025-26, up from £13.7 billion the previous year. Reports suggesting the Government is unlikely to align CGT rates with income tax may provide some reassurance, but uncertainty over future reforms continues to affect taxpayer behaviour.

The ATT says the record receipts demonstrate the significance of CGT to the Exchequer while underlining the importance of carefully considering how taxpayers respond to tax changes.

Jon Stride, chair of the ATT’s Technical Steering Group, said:

"The debate around capital gains tax ahead of the Budget highlights just how sensitive this area of the tax system can be.

"Recent reports suggest ministers are unlikely to pursue full alignment of CGT and income tax rates, but speculation about possible reforms can itself influence behaviour. Taxpayers may delay transactions, bring disposals forward or alter investment decisions depending on what they expect to happen.

"Whatever decisions the Government ultimately takes, stability, predictability and clear communication are essential. Taxpayers need to understand the rules they are operating under and have sufficient time to adapt to any significant changes.

"A well-designed tax system should raise revenue efficiently while remaining understandable, workable and proportionate for those who have to comply with it."

The ATT said that any future reforms should be accompanied by clear guidance, sufficient lead-in times and careful consideration of behavioural and administrative impacts on taxpayers, advisers and HMRC.

Notes for editors:

1. HMRC's latest receipts statistics show that Capital Gains Tax raised £24.3 billion in 2025-26, compared with £13.7 billion in 2024-25.