Katharine Arthur, Partner and Head of Private Client, notes that the increase in Capital Gains Tax (CGT) receipts by more than 100% is a “sign of the times”. This is from Katharine’s recent comments shared with ePrivateclient.

The rise in CGT receipts is according to the latest monthly tax figures released by HMRC. Between February 2022 and January 2023, the tax regulator collected a record £18 billion. In January 2023, CGT receipts were £13.2 billion, up 23% over January 2022 when compared like-for-like.

Katharine notes that “with scores of investors having exited the buy-to-let sector over the past year, and inflation causing house prices and asset values to soar, HMRC is reaping the rewards from people’s capital gains.” However, we have yet to see the full impact of the changes to CGT from the Autumn Statement in 2022. In addition, and in advance of the reduction to the CGT annual exemption rate in April 2023, the mood across investors is to streamline their portfolios in anticipation. This could lead to further increases in CGT receipts in January 2024.

Read Katharine’s comments in full in ePrivateclient’s article here (subscription needed).

Tax planning assistance

With the reduction in CGT annual exemption expected to raise an additional £25 million in tax revenue in 2023/24 alone, it makes planning in this area even more important. Our Private Client & Trusts team is on hand to help you make best use of the annual exemption and to plan your tax affairs. Please get in touch with Katharine or a member of the private client team to discuss your needs further. You can also reference our Year End Tax Planning Guide 2023 to help you make the tax rules work to your advantage ahead of the tax year-end.