Investment - Articles - CGT and IHT up again as both hit record year

Mark Jephcott, Senior Relationship Manager at Utmost commented: “CGT receipts remain at historically elevated levels following a record year for Treasury receipts. The higher rates introduced at the Autumn Budget 2024, combined with fiscal drag, are drawing ever more individuals into the CGT net and are likely to drive a sustained increase in receipts over the coming years. While CGT generates significant revenues for the Treasury, it does little to enhance the UK's appeal to internationally mobile investors and entrepreneurs, with other jurisdictions offering more attractive tax regimes for wealth creators.”

“Inheritance Tax continues to generate historically high tax revenues for the Treasury as frozen thresholds and rising asset values bring more families within scope of the tax. The Autumn Budget 2025 extended the threshold freeze until 2031, while the scope of IHT continues to expand following reforms to Business Property Relief that came into effect on 6 April 2026 and with unused pension pots set to fall within the scope of Inheritance Tax from April 2027. While these measures are increasing tax receipts, it is making the UK a less competitive destination for entrepreneurs, investors and internationally mobile wealthy individuals, who make an outsized contribution to the tax take.”