HMRC cracks down on second home sales in record CGT compliance surge

HM Revenue & Customs (HMRC) netted £256 million from more than 10,000 Capital Gains Tax (CGT) compliance checks in 2024/25, the highest total in at least five years, according to analysis by BCLP, the international law firm.

According to data obtained by BCLP from HMRC, the number of CGT compliance checks completed by HMRC jumped from 7,769 in 2023/24 to 10,063 in 2024/25, a jump of nearly a third (30 percent) in just one year.

The amount of additional tax collected surged from £182 million to £256 million over the same period, an increase of 41 percent.

BCLP says the figures reflect HMRC’s intensified focus on CGT compliance as part of its broader strategy to close the tax gap and increase revenue. While the checks completed in 2024/25 generally relate to returns filed in earlier periods, the increase signals a sustained enforcement effort targeting areas of perceived underreporting.

Kate Ison, Partner at BCLP, comments: “HMRC’s compliance activity around CGT has scaled up significantly, with more checks completed and more tax recovered than in previous years. The increased scrutiny reflects a broader policy shift towards data-led enforcement and targeted interventions.”

“HMRC is under mounting pressure to close the tax gap and bring in more revenues – a pressure likely to intensify due to the position of the public finances.”

“After a period of boosting staff numbers, we are now seeing a sustained uptick in compliance activity. We expect this trend to continue. HMRC’s use of behavioural analytics and pattern recognition is becoming more sophisticated, allowing it to focus resources on cases with a higher risk of underpayment.”

She adds: “HMRC is increasingly leveraging third-party data to identify discrepancies and prompt compliance checks. This includes information from financial institutions, investment platforms, and share registrars, as well as data obtained through international exchange agreements.”

Number of compliance checks closed by HMRC with a CGT component

Yield from compliance checks closed by HMRC with a CGT component