CGT receipts hit record high as IHT take continues to rise

Capital gains tax (CGT) receipts have reached their highest level on record with two months of the tax year still to go, while the inheritance tax (IHT) take continues to increase towards a record-breaking year, HMRC’s latest figures have shown.

Each year, January accounts for the vast majority of CGT receipts due to reporting and assessment deadlines.

CGT take totalled £17bn in January 2026, an increase of £7bn compared to the £10bn collected in January last year.

This brought CGT receipts for the first 10 months of the 2025/26 tax year to £18.8bn, up from £11.9bn in the same period in 2024/25.

CGT receipts have therefore hit a record high with two months to go, surpassing the £16.9bn recorded in 2022/23, and look set to exceed the Office for Budget Responsibility’s forecast of £20.3bn for 2025/26.

“CGT has recorded its highest ever year of receipts as tax reforms bear fruit for the Treasury,” commented Utmost global wealth specialist, Marc Achseson.

“The substantial increase in this year’s collections is likely to be driven by changes made at the Autumn 2024 Budget, primarily the hike in the main rates of CGT.

“The adjustments made by the government firstly mean that a greater number of individuals will be subject to CGT as their gains from property sales, investments or business disposals trip over the lower exemptions thresholds and secondly those people face higher rates of tax.

“Additionally, the government chose to freeze CGT rate thresholds and allowances for a prolonged period, meaning that inflationary increases in asset values will push more individuals and businesses into higher tax bands.

“With property prices, stocks, and other investments continuing to experience upward pressure, the tax burden on asset sales will increase, further elevating CGT receipts.”

Meanwhile, the government’s IHT receipts also continued to increase, totalling £7.1bn in the first 10 months of 2025/26.

This represented an increase of £130m compared to the same period in 2024/25.

While IHT collections remained on track to continue the trend of record-breaking years, which has occurred each year since 2022/23, growth appeared to not be as strong as the previous few years.

“IHT receipts have grown by more than 50 per cent over the last five years, a trend that is predicted to continue and accelerate,” said Nucleus technical services director, Andrew Tully.

“This is due to the freezing of nil rate bands until April 2031, rising UK property values, and planned reductions to agricultural and business reliefs from April 2026.

“Although the impact of the agricultural and business relief changes has recently been eased with the increase in the 100 per cent relief threshold to £2.5m, rather than the previously announced £1m.

“The government is also proceeding with its plans to include pensions within IHT from 6 April 2027. This will deliver poor outcomes for customers, beneficiaries, personal representatives, the industry, and HMRC. But it will drive further strong growth in IHT receipts after 2027.

“There is still time for the government to consider alternative options which increase its tax take on wealthier people passing on pension wealth, while avoiding the numerous problems created by bringing pensions into IHT. However, it’s looking increasingly likely it will stubbornly stick with its current complex proposals.

“Taken together all of this is likely to make IHT a more relevant issue for many more families within the next five years. Advisers can help clients mitigate these taxes by setting up trusts and making use of gift allowances and the spousal exemption.”

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