Rachel Reeves rakes in £22BILLION for Treasury after 'huge increase' in capital gains tax

Patrick O'Donnell
Thu, 23 Apr 2026 16:12:53 +0000

Capital gains tax (CGT) revenues surged 62 per cent to reach £22.1billion, compared with £13.69billion, in the previous tax year, according to the latest figures from HM Revenue and Customs (HMRC).

Analysts have claimed the latest jump in CGT receipts are a direct consequence from changes to the tax regime introduced by Chancellor Rachel Reeves.

Sean McCann, chartered financial planner at NFU Mutual, attributed much of the increase to buy-to-let landlords offloading properties before new Renters Rights legislation comes into force, triggering significant tax liabilities.

He explained: "Strong investment markets will also have led to bigger gains for those cashing in their returns."

"Both these factors together with the increase in the rates of tax has led to record receipts for the Chancellor.

"When property and investments have been held for a significant period, some of the increase in value will have been due to general inflation rather than ‘real growth’, meaning many will be paying higher rates of tax on inflationary gains.

"Indexation allowance which was designed to address this issue was abolished in 2008."

Outside of this levy, inheritance tax (IHT) is drawing more families into its net as property and asset values climb while key thresholds remain static.

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The main tax-free allowance of £325,000 and the additional £175,000 residence nil-rate band for passing on a family home to children or grandchildren will stay frozen until 2031.

Mr McCann added: "Inheritance tax is impacting a growing number of families, as property and asset values continue to rise."

The burden looks set to intensify further, with pensions due to be brought within the inheritance tax framework from April 2027.

He shared: "The proposal to bring pensions into the Inheritance tax net from April 2027 will only accelerate the number of families impacted."

Farming and business communities face significant upheaval following changes to Agricultural Property relief and Business Property relief that came into effect this month.

Mr McCann warned: "The changes to Agricultural Property relief and Business Property relief which took effect this month will have a huge impact on farming and business communities."

For those seeking to mitigate their inheritance tax exposure, lifetime gifting offers one avenue of relief. Individuals can give away up to £3,000 annually without any inheritance tax implications, and unused allowances can be carried forward one year.

It should be noted that regular gifts made from income that do not affect one's normal standard of living also qualify for immediate exemption from inheritance tax.