HMRC data reveals landlords and investors paid a record £16.985 billion in Capital Gains Tax in January 2026 – 69 percent higher than the same month a year earlier. Total CGT receipts for the 12 months to January 2026 reached £20.6 billion, up from £14.3 billion in the previous year – a rise of 44 percent. The figures suggest property investors selling ahead of anticipated tax changes may be a key driver of the increase.
Pre-budget sales may explain surge
Jason Hollands, managing director at wealth management firm Evelyn Partners, said the January figure was “a big upswing” that likely reflects investors disposing of assets ahead of the October 2024 Budget. “January 2026’s figure includes the payment of self-assessment bills for the 2024/25 tax year so it could reflect investors – from April 2024 – disposing of assets ahead of an expected rise in CGT rates that duly arrived at the October 2024 Budget,” Hollands said. He noted that many investors expected CGT rates to rise more than they did, with some Labour MPs having argued for equalisation with income tax rates. “A summer of ’24 firesale of assets could be behind this spike,” he added. The annual exemption was slashed by the previous government to just £3,000 by April 2024, leaving investors with little protection against CGT when selling assets. This will have amplified revenues from any pre-Budget disposals.
Landlord exodus contributes to record take
The surge in CGT receipts coincides with an ongoing trend of landlords exiting the private rental sector, driven by increased taxation and regulatory pressure. With the Renters Rights Act set to take effect in May 2026, many landlords have opted to sell rather than deal with new compliance requirements. Hollands said the true impact of the higher CGT rates introduced in October 2024 will only become clear next year. “We will only know next year if this was a one-off boost from pre-October 2024 disposals, or whether investors continued afterwards to sell assets at the higher CGT rates,” he said. For landlords still holding property, the data highlights the growing cost of exiting the sector. CGT on residential property gains is now charged at 18 percent for basic rate taxpayers and 24 percent for higher and additional rate taxpayers – rates that took effect from the Autumn Budget.
What landlords should consider
Landlords planning to sell should factor in the reduced annual exemption and higher CGT rates when calculating potential liabilities. Those with multiple properties may benefit from staggering sales across tax years to maximise use of annual exemptions. The HMRC CGT rates guidance confirms the current thresholds, while landlords holding properties in limited companies face different tax treatment on disposals.
Editor’s view
Record CGT receipts tell their own story: landlords are leaving, and the Treasury is cashing in on the way out. For those still holding property, the message is clear – selling now carries a significant tax bill, but staying means facing tighter regulations and more red tape.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 23 February 2026
Sources: HMRC, Evelyn Partners
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