Capital Gains Tax (CGT) receipts fell 8.4% in 2025 to £13.65bn, down from £14.9bn in 2024, according to data released this morning.
CGT receipts were £231m in December, well down on the £335m received in December 2024,
The drop comes despite the rise in CGT rates from 10% to 18% for basic rate taxpayers and 20% to 24% for those on higher rates of tax, enacted from 30 October 2024.
Jason Hollands, managing director at wealth manager Evelyn Partners, said the data shows that taxpayers have "swerved" the rising rates by deferring disposals.
He said: “The data does not bode well for the Chancellor’s hopes that her CGT rate hikes will bolster the public purse over the coming years.
“While taxing investors more heavily on gains from capital they have put at risk does not seem to work as a revenue raiser, what it does risk is discouraging entrepreneurialism and investment, which the country needs to boost growth. Any future move to bring CGT rates closer to income tax rates – a move supported by some MPs on the left - would be deeply unwise, acting as a drag on investment, business activity and growth, but also failing to bring in significant new revenues.”
He added that previous changes to CGT have also not boosted Government coffers as desired.
He said: “Investors – and CGT receipts - have had time to absorb the slashing of the CGT annual exemption from £12,300 in 2022/23 to just £3,000 in 2024/25 under the previous Conservative government.
"Sure enough, the receipts data reveals little or no benefit to the Treasury coffers from this step. Final revenue data shows that CGT brought in £16.93 billion in 2022/23, £14.5 billion in 2023/24 and just £13.06 billion in 2024/25 – and these latest receipts figures suggest that downward trend could continue.
“Indeed, the only significant consequence is likely to have been distorting and disincentivising effects on investment and business decisions.”
Shaun Moore, tax and Financial Planning expert at Quilter, agreed: “In theory, the scope for higher CGT revenues remains clear. The annual exempt amount has been cut sharply in recent years and higher rates on many assets have increased the potential tax due on disposal.
“In practice, the data continues to show how sensitive capital taxes are to behaviour. Faced with larger potential bills, investors often delay selling, reduce disposals or restructure their affairs, which can dampen receipts even under a tougher regime. As a result, CGT remains one of the most volatile parts of the tax system and an unreliable source of steadily growing revenue.”