HMRC takes record £14 billion in capital gains tax

11 Aug 2022

Official data has revealed that HMRC took a record £14 billion in capital gains tax (CGT) in the 2020/21 financial year.

The data showed that the total amount of CGT liability was £14.3 billion for 323,000 taxpayers. HMRC said that the liability has increased by 42% from the previous tax year.

Policy changes affecting the eligibility criteria for Business Asset Disposal Relief (BADR) contributed to the increase in CGT liabilities, HMRC added.

8% of CGT came from CGT disposals that qualified for BADR. HMRC found that BADR was claimed by 47,000 taxpayers on £11.9 billion of gains in the 2020/21 tax year, resulting in a total tax charge of £1.1 billion.

Additionally, in the 2020/21 tax year 129,000 taxpayers used the CGT on property service to file 137,000 returns. These returns revealed a tax liability of £1.7 billion, which was accrued on disposals of residential property.

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