Data published recently by HMRC has revealed that it collected a record £16.7 billion in Capital Gains Tax (CGT) in the 2021/22 tax year.
The data showed that the number of individuals paying CGT rose by 20% to 394,000 – double the figure recorded a decade ago.
According to HMRC, 214,000 people paid CGT on gains of up to £25,000. Experts have warned that changes to the Annual Exemption Allowance (AEA) will make the tax take from CGT ‘more stark’ – the AEA fell from £12,300 in the 2022/23 tax year to £6,000 in April 2023, and is set to fall again to £3,000 from April 2024.
HMRC said that 45% of CGT came from those who made gains of £5 million or more. In the 2021/22 tax year, 45% of gains for CGT-liable individuals came from the 12% of people with taxable incomes above £150,000.
Meanwhile, 7% of CGT came from CGT disposals that qualified for Business Asset Disposal Relief (BADR). This was claimed by 47,000 individuals on £12.6 billion of gains in 2021/22, generating a total tax charge of £1.2 billion.