A record £127bn in capital gains was reported in the 2024/25 tax year, up 82% year on year, while capital gains tax (CGT) liabilities rose 89% to £24.2bn, according to new figures from HMRC.

The number of people paying CGT also rose 45% to a record 584,000, the figures showed.

Most CGT comes from the small number of taxpayers who make the largest gains, HMRC said. In the 2024 to 2025 tax year, 45% of CGT came from those who made gains of £5m or more. This group represents less than 1% of CGT taxpayers each year.

HMRC said the increase reflected several tax policy changes and expectations around future rates. These included the increase in the main rates of CGT midway through the tax year, successive reductions in the annual exempt amount, and the announcement that Business Asset Disposal Relief rates would rise from April 2025.

Speculation before the Autumn 2024 Budget that CGT rates could increase further also encouraged some investors and business owners to bring forward asset sales.

London and the Southeast of England accounted for almost half of all reported gains, at 49%, and 50% of total CGT liabilities. These figures are broadly constant over time and there is a stable regional distribution overall, HMRC said.

The figures also showed that £12.9bn residential property gains were reported in the 2024 to 2025 tax year, leading to total CGT liabilities of £2.8bn. This is an increase of 34% and 26% respectively from the 2023 to 2024 tax year.

Commenting on the latest data, Mark Jephcott, senior relationship manager at Utmost, said:
“These record capital gains reflect how strongly tax policy can influence the timing of asset sales. The question for the Treasury is how much activity was brought forward and whether that leaves a quieter period for disposals in the years ahead.”

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