Investment - Articles - OBR substantially ups CGT predictions alongside Budget 2026

Relative to the March forecast, CGT receipts are expected to be £4.8 billion higher in 2026/27, largely due to a reassessment of receipts in 2025/26. Thereafter receipts are forecast to be an average of £3.1 billion higher each year, driven by the reassessment of previous receipts and higher forecast equity prices.

The Budget also introduces changes to the taxation of company distributions and business asset disposals, which will affect future CGT receipts.

Mark Jephcott, Senior Relationship Manager at Utmost: “The latest OBR projections point to a sustained rise in Capital Gains Tax receipts, with forecasts now significantly higher for the coming years. This reflects more than just the impact of individual asset sales, suggesting that the tax changes introduced at the Autumn Budget 2024 are continuing to influence the amount being collected.

“Higher equity prices are also playing an important role in the revised outlook with stronger asset values expected to contribute to rising receipts over the forecast period.

“For anyone managing significant wealth, CGT needs to be a central consideration rather than an afterthought. Business owners planning an exit, families looking to pass wealth between generations and individuals with assets across different jurisdictions should all consider how the timing and structure of disposals could affect their tax position.”