The latest HMRC update published this morning shows that the Chancellor collected £1,359 million in Capital Gains Tax (CGT) through the first seven months of 2025/26 (April to October 2025), a rise of 5% or £62 million in comparison with the same period in the previous financial year (£1,297 million). CGT receipts are estimated to hit £25.5 billion a year by 2029/30 – nearly twice current levels.
This morning’s data also shows that Inheritance Tax (IHT) receipts recorded a total of £5.2 billion through the first seven months of 2025/26, an increase of £160 million (3%) compared to the same period in 2024/25 (£5.0 billion).
Simon Martin, Head of UK Technical Services at Utmost Wealth Solutions, a leading provider of insurance-based wealth solutions, commented:
On Inheritance Tax statistics:
“Inheritance Tax looks set for another record year as frozen thresholds, rising asset prices and a tightening of the regime at the Autumn 2024 Budget combine to drive increasing collections for the Treasury.
“With the Chancellor seemingly backing away from the big lever of an Income Tax hike at the upcoming Autumn 2025 Budget, a raft of smaller tax increases is back on the menu which could see further reforms made to Inheritance Tax.
“A change to the seven-year gifting period – either by extending the period or reducing the period but abolishing IHT taper relief – appears to be a likely target, echoing ideas previously floated by the Office for Tax Simplification.”
On Capital Gains Tax:
“The Treasury is benefitting from the increase in Capital Gains Tax rates and the tightening of the annual exemptions at the Autumn Budget 2024 which are expected to increase receipts by nearly 50% in this 2025/26 tax year and reach around £20 billion before rising by a further £5 billion before the end of the decade.
“With the Chancellor once more on the hunt for a collection of tax rises that are borne by shoulders of the wealthiest, the Capital Gains Tax regime could once more be revisited at the upcoming Autumn 2025 Budget. Possible changes include ratcheting up rates again or removing the exemption for primary residences on the sale of all homes of over a set threshold.
“Any further changes to Capital Gains Tax could materially impact behaviours around investment, the property market and the timing of asset disposals.”
