Changes to capital gains tax (CGT) have driven a surge in the number of clients needing support with calculating CGT liabilities, according to data from Financial Software Ltd (FSL).

The research, conducted by The Lang Cat, showed that advisers reported an average of 18 per cent of their clients were affected by the tax in 2022/23.

This figure more than doubled to 37 per cent in the 2024/25 tax year, driven by the annual exemption amount for CGT falling from £12,300 in 2022/23 to £3,000 in 2024/25 bringing an additional 87,000 taxpayers into scope of the tax.

During the same period, 10 per cent of advisers gained new clients due to the changes to CGT and/or unexpected liabilities due to cuts in the tax-free allowance.

The latest HMRC data showed 359,000 people were liable to CGT in 2023/24, up marginally from 355,000 the previous tax year.

Almost two thirds (65 per cent) of the individuals who paid CGT in 2023/24 had a taxable income of under £49,999, which FSL said highlighted that CGT was no longer a tax for the ultra wealthy.

“Given the number of taxpayers that have now been brought into scope for CGT, it’s no surprise that many are turning to advisers for support and expertise,” commented FSL MD, Michael Edwards.

“With tax reporting becoming an increasing part of advice firms’ day-to-day work, it’s imperative that providers and platforms support their advisers with robust tools and accurate data to make light work of what can be an extremely onerous and complex task.

“This is also vital to ensure they’re fulfilling their obligations under Consumer Duty and supporting clients with avoiding foreseeable harm such as hefty fines from HMRC.”

FSL noted that the findings came amid rising speculation around whether the government will change CGT rules again as they look to plug the gap in public finances.

Research from Saltus found that 78 per cent of high net worth families were expected tax rises in the next year, with 46 per cent predicting CGT will be hiked again.

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