In the 2023-24 tax year, the total capital gains tax (CGT) paid shrank 19% to £12.08bn from £14.65bn the previous year, a decrease of £2.56bn on the previous year. There was no real change in the numbers of taxpayers paying the tax on asset sales, up 1% to 378,000 taxpayers, realised on £65.9bn of gains.

The drop in tax take coincides with the sharp reduction in the annual exemption allowance from £12,300 to £6,000 for individuals, inevitably bringing more taxpayers into CGT for the first time. But it is worth noting that 40% of CGT came from less than 1% of total CGT taxpayers, and encompasses individuals and trusts who made gains of more than £5m, and earn over £150,000 a year.

This was the lowest amount of CGT collected since before the pandemic, with the figures showing a sharp drop since 2021-22 when they hit a high of £17bn. In the last decade CGT revenue has risen from £5.59bn in 2013-14 as tax thresholds have changed and asset values including property have increased.