Investment - Articles - OBR upgrades CGT receipts by £6.1bn by the end of the decade

Of that increase, around £2.7 billion is attributed to the reduced CGT relief on disposals to employee ownership trusts from 2026-27 onwards, while around a further £3.4 billion is forecast to be hauled in by The Treasury due to rising equity prices. The increase in Capital Gains Tax collections over the remainder of the decade is sharp: £13.7 billion was paid in CGT in 2024/25, with projections increasing this to £20.3 billion in 2025/26 and £27.3 billion by 2029-30.

 

Simon Martin, Head of UK Technical Services at Utmost Wealth Solutions: “The OBR has significantly uprated its projected haul from Capital Gains Tax over the remainder of the decade with an additional £6.1 billion forecast to be collected by 2029-2030. Under half of this increased tax take comes from the policy measure announced in the Budget in reducing reliefs on employee ownership trusts demonstrating the impact of ongoing increases to equity and property valuations. The Chancellor, however, may not be counting her Capital Gains Tax chickens just yet given the note from the OBR that the ‘Mansion Tax’ could drive a reduced yield in property taxes such as Capital Gains Tax. Behavioural changes may also be an increasingly important factor as those liable to rising CGT bills reconsider their options and long-term wealth strategies.”