The UK’s HM Revenue & Customs reported a record £24.2bn in capital gains tax (CGT) receipts for 2024/25, an 89% jump from the prior year and the highest since 1987. Following Rachel Reeves’ 2024 Budget, CGT rates rose to 18‑32% and the tax‑free allowance was cut to £3,000, driving a 45% increase in taxpayers to 584,000. Total gains reported climbed 82% to £127bn, with crypto investors contributing £1.38bn from 17,600 holders, including 240 who each made gains of at least £1mn. Over £8mn was recovered from crypto tax settlements. High earners accounted for 45% of CGT, with those making £5mn or more representing less than 1% of taxpayers. The data underscores the Labour government’s push to close fiscal gaps, though officials caution further rate hikes could reduce revenue.

Andy Burnham’s administration is considering additional tax measures in its October Budget. While some officials warn that higher CGT rates may prompt asset shielding, Burnham stressed he would “definitely not” tax the wealthy out of the UK and aims to keep entrepreneurs building wealth domestically.