The Treasury has witnessed record amounts of Capital Gains Tax (CGT) in the year ended 5 April 2021, with CGT rising 42% to £14.3bn against the prior year. 

Some 323,000 taxpayers footed the CGT bill in 2020-21, marking an increase of 53,000 from the previous year, and the average bill was £44,316 per CGT taxpayer, up from £37,289 in 2019-20.

According to RSM, the quantum of capital gains reported increased by 19% and the quantum of CGT payers increased by 20%, with the “record-breaking” quantum of CGT receipts following bumper receipts in the previous tax year.

RSM said the bumper CGT receipts in the previous tax year were largely driven by reports that Business Asset Disposal Relief (BADR) would be abolished, which “accelerated many entrepreneurs’ decision to sell their businesses”.

Source: Accountancy Today