HMRC has released its tax receipts for the year so far, with CGT (Capital Gains Tax) coming in at £914m for the April-to-August period.
Meanwhile, payments came in at £198m in August compared to approximately £190m a year earlier.
Sarah Coles, head of personal finance at AJ Bell, said: “This is typically a slow month for capital gains tax receipts, but increasingly is a busy one for tax speculation.
“It’s a useful demonstration of the fact that when it comes to CGT, tightening the screw doesn’t necessarily generate more tax, because people will change their behaviour – they’ll sell up ahead of changes, and then hoard assets for as long as possible afterwards to avoid a hefty tax bill.“
While Coles noted CGT receipts generally tend to spike in the new year, so far it seems the tax take is “lagging”.
“It appears that the dramatic cuts in the annual exempt amount and the hikes in the rate for stocks and shares haven’t bolstered the Treasury coffers significantly.”
That said, Coles noted this has increased speculation about the upcoming Budget, following rumours the government may be considering equalising CGT and income tax rates.
Simon Martin, head of UK technical services at insurance wealth solutions provider Utmost, added: “CGT receipts remain elevated following a record year for the Treasury, with higher rates introduced at the Autumn Budget 2024 and ongoing fiscal drag bringing more taxpayers into the CGT net.”
A growing tax burden risks making the UK a less attractive area for investors, particularly when other areas offer more favourable tax regimes, Martin said.
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