The UK tax authority collected £19.7bn in capital gains tax during the opening two months of 2026, representing a substantial 73% increase from the £11.4bn recorded in the corresponding period of 2025, according to HM Revenue & Customs data.

Wealth management professionals have flagged the surge as evidence that static tax-free thresholds are capturing a growing volume of taxable gains.

These collections stem from self-assessment returns covering the 2024/25 fiscal year, predating the CGT rate adjustments introduced in the October 2024 Budget.

Jason Hollands, managing director at Evelyn Partners, a wealth management consultancy, observed that the two-month CGT intake of £19.7bn marks a striking 73% year-on-year escalation.

The January-February receipts encompass self-assessment settlements for 2024/25, potentially reflecting strategic asset disposals by investors anticipating the rate increases that materialized in the autumn Budget.

Market expectations ahead of that Budget had suggested more aggressive rate hikes than ultimately implemented, with certain Labour parliamentarians advocating for alignment with income tax brackets. This anticipatory environment likely triggered accelerated disposal activity among asset holders.

The previous administration's reduction of the annual CGT exemption to £3,000 by April 2024 left minimal shelter for investors liquidating positions. This compressed threshold amplified tax exposure on pre-Budget transactions, magnifying revenue flows from disposal activity during that window. Whether elevated collections persist under the new rate structure remains unclear until next year's data emerges.

Capital gains taxation typically exhibits behavioral sensitivity, with investors either advancing transactions ahead of anticipated changes or postponing realization afterward. Some market participants may now be adopting a wait-and-see posture, hoping for future rate relief, while others could be reconsidering business formation and investment commitments in response to the elevated tax environment. These longer-term behavioral shifts will take time to manifest in revenue patterns.

Historical revenue data reveals limited fiscal benefit from the exemption reduction itself. Final figures show CGT yielded £16.93bn in 2022/23, declining to £14.50bn in 2023/24 and further to £13.06bn in 2024/25, indicating investor hesitancy to crystallize gains under diminished allowance protection.