The latest from Utmost Wealth Solutions;
Capital Gains Tax (CGT) hit new highs in January, with the month typically delivering the vast majority of CGT tax receipts due to filing processes. It shows a total of £10.3 billion was received from CGT in January taking the year-to-date total to £12.1 billion compared to £12.1 billion last year and £14.4 billion in 2022/23 – the all-time high. This was likely due to lots of people triggering gains ahead of the Autumn Budget.
The recent tax receipts update from HMRC also show that Inheritance Tax (IHT) receipts reached £7.0 billion through April 2024 to January 2025, £0.7 billion higher than the £6.3 billion recorded in the previous financial year.
Marc Acheson, Global Wealth Specialist at Utmost Wealth Solutions, commented: “January’s Capital Gains Tax figures highlight another fiscal revenue stream that is delivering record sums to the Treasury. The surge in CGT receipts was likely driven by lots of people triggering gains ahead of the Autumn Budget. The increase in CGT rates and reduction of the lifetime limits for Investors’ Relief announced at the Budget are set to drive further increases in CGT totalling around £1.5 billion through the rest of this tax-year and 2025/26.
“Inheritance Tax is also delivering record receipts for the Treasury as property values soar while the thresholds remain frozen – a policy that has now been extended until the end of the decade. It now looks increasingly likely that IHT receipts for this financial year will surpass the 2023-24 record to deliver an all-time high haul for the Chancellor.
“Additional reforms, including IHT charges on pension wealth at death, restrictions on agricultural and business reliefs, the application of periodic and exit charges to excluded property trusts and the removal of the non-dom status which will subject those UK resident for over 10 years to a 40% IHT charge on death on their global estate from April, will further increase the IHT tax-take over the coming years.”
“We have seen a sharp increase in clients seeking professional advice to ensure they fully understand the implications of these reforms. With careful planning and the right advice, there are steps people can take to mitigate the impact of Inheritance Tax and changes to Capital Gains.”
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