The Government raked in record capital gains tax receipts as Labour’s tax hikes on businesses continue to prop up the public finances.
But experts warn that the tax take could fall in the coming years as investors and landlords change their behaviour to mitigate their annual bill.
The tax office collected £24.2billion in the 2024 to 2025 tax year, an 89 per cent increase from the previous year as the hike to the main rates of CGT took effect midway through the year.
Former Chancellor Rachel Reeves heaped further pressure on businesses in her October 2024 Budget, raising rates from 10 to 18 per cent for basic-rate taxpayers, while higher-rate taxpayers faced a 24 per cent levy on disposals from 20 per cent previously.
Andy Burnham and his new Chancellor will need to find more headroom if CGT receipts fall
