Capital gains tax surges 60% in three months

There was a significant increase in capital gains tax receipts after the Budget with December 2024’s figure being more than double that of the corresponding month in 2023, new figures show.

According to the data, capital gains tax receipts rose to £335m, a whopping £179m more than 2003’s £156m as significant tax rises in Labour’s first Budget had a major impact.

Over the final quarter of 2024 capital gains tax hit an all-time high of £808m, up 60% from the previous year’s £505m for the same period.

Additional revenue started to flow into the Treasury in October long before the Budget as businesses attempted to avoid predicted capital gains tax hikes, and continued into November, with the take from the levy for these two months alone £130m higher than the corresponding period in 2023.

Sarah Coles, head of personal finance, Hargreaves Lansdown, commented: “The Budget delivered for the taxman and the CGT bill rose in December to £335m: its highest since March. In the last three months of 2024, we paid £808m in capital gains tax. That’s up an impressive 60%.”

Tax receipts in total have hit another record high, increasing to £607.3bn between April and December, a £19.4bn rise compared to 2023.

Inheritance tax (IHT) is also on track for another record-breaking year. So far this tax year, £6.3bn has been paid in IHT, up nearly 10% at £600m.

Inheritance tax take continues upward trajectory – “a golden goose for HMRC”