UK capital gains tax (CGT) receipts fell in 2025 as investors adjusted their behaviour in response to higher rates and a reduced annual allowance. Revenue from CGT dropped to £13.6 billion, down from £14.9bn the previous year, despite rate rises announced in the 2024 Budget.
Overall tax receipts, however, continued to climb. For the first nine months of the 2025/26 tax year, from April to December 2025, income tax, CGT and national insurance contributions (NICs) together rose by 10.5% to £371.8bn. That was £39.4bn higher than the same period last year. Total receipts across all taxes reached £658bn, an increase of £50.6bn year on year.
PAYE income tax and NICs accounted for the bulk of the growth, contributing £347.8bn over the nine months. By contrast, self assessment income tax and CGT together generated £22.8bn, highlighting the relative weakness of capital taxes compared with employment-related revenues.
Full-year CGT receipts for 2025 were 8.4% lower than in 2024, reinforcing concerns that higher rates can discourage asset disposals. Analysts have pointed to the sensitivity of capital taxes to behavioural change, with investors delaying or avoiding sales to manage their tax exposure.
NICs also told a clear story for businesses. Employer NICs rose sharply to £11.9bn in December 2025, up from £9.4bn a year earlier, underlining the rising cost of employment.
In an unexpected twist, fuel duty increased to £2bn in December, up £100 million year on year, despite continued growth in electric vehicle adoption.
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