CGT receipts soar to exceed Autumn Budget forecast; IHT take continues to rise

The government’s capital gains tax (CGT) receipts soared in the first two months of 2026 to reach £21.5bn for the first 11 months of the 2025/26 tax year, HMRC’s latest figures have revealed.

CGT receipts in February 2026 totalled £2.7bn, an increase of £1.3bn compared to the £1.4bn registered in February last year.

This brought CGT receipts for the first two months of 2026 up to £19.7bn, a 73 per cent rise compared to the same period last year.

At the 2025 Autumn Budget, the Office for Budget Responsibility (OBR) forecast CGT receipts to total £20.3bn in the 2025/26 tax year, with receipts already exceeding this forecast with a month to space.

However, the OBR upped its forecast for 2025/26 CGT receipts at the 2026 Spring Statement to £22bn.

“The substantial increase in this year’s collections continues to be driven by the higher rates introduced at the Autumn Budget 2024, which has led to greater number of individuals being drawn into the CGT net as gains from property sales, investments or business disposals exceed the lower exemptions thresholds,” said Utmost head of UK technical services, Simon Martin.

“With the government also freezing the CGT rate thresholds and allowances for a prolonged period, inflationary increases in asset values will push more individuals and businesses into higher tax bands. As a result, we are likely to see a sustained increase in CGT revenues in the coming years.

“While this may be good news for the Treasury, this record tax burden is not good for the UK’s competitiveness, and it is unsurprising that demand for financial advice remains strong as individuals seek clarity on the implications for their long-term financial planning.”

HMRC’s data also showed that inheritance tax (IHT) receipts increased by £2m year-on-year to reach £614m in February 2026.

This brought IHT receipts for the first 11 months of 2025/26 to £7.7bn, an increase of £132m compared to the same period the previous tax year.

IHT receipts look set to exceed last year’s record-high take of £8.3bn and reach the £8.7bn forecast by the OBR at the 2026 Spring Statement.

“The monthly HMRC figures confirming that IHT receipts continue to climb come as no surprise to those of us working closely with families on long-term wealth planning,” commented Evelyn Partners head of estate planning, Ian Dyall.

“The trend has slowed of late – perhaps due to slower house price growth in recent years - but still puts the Treasury firmly on track for another record financial year of total receipts in 2025/26.

“The expansion of IHT is not a result of sudden shifts in wealth, but rather years of fiscal drag. Nil rate bands have been frozen for many years while asset values, particularly property, have continued to inflate.

“Rising asset prices benefit the holders of investments and properties but the danger is that these households are sitting on an unexpectedly large, and rising, tax bill for their beneficiaries at death.

“The growth of IHT revenues serve as a reminder that, as reflected in many of our clients, IHT is no longer a marginal concern affecting only the very wealthiest, as it used to be. Families with modest and commonplace levels of wealth can now benefit from some careful estate planning and IHT-mitigations strategies.

“Such proactive planning can include regular estate valuations, early use of allowances and reliefs, and lifetime gifting, as well as possibly the use of trusts. With some very large pension pots about to enter the taxable estate in just over a year’s time, the cost of inaction has never been higher."

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