Capital gains tax liabilities reached a record £24.2bn in the 2024-25 tax year after taxable gains jumped to £127.3bn, newly released HMRC figures show.
The annual data sharpens the picture behind this summer’s receipts updates. HMRC said the number of taxpayers with a CGT bill rose to 584,000, up 45 percent in a year, as the annual exemption dropped again and investors rushed to crystallise gains before October 2024 rate changes.
Landlords looking at disposals now face a tax backdrop that is getting harder to ignore. The latest release covers all asset classes, not just property, but it points to a wider pattern already visible across the rental market – more owners are being pulled into CGT and more sales are landing with a larger bill than they would have faced two years earlier.
HMRC figures show more investors were pulled into CGT
The record total comes from HMRC’s recent push to tighten tax compliance for landlords and sits alongside Landlord Knowledge’s coverage of HMRC moving overdue landlords into Making Tax Digital from September. Against that backdrop, the latest Capital Gains Tax statistics show how quickly the tax take has risen.
Taxable gains were up 82 percent year on year, while liabilities rose 89 percent. HMRC also said consecutive cuts to the annual exempt amount brought up to 163,000 extra taxpayers into scope. The allowance fell from £12,300 in 2022-23 to £6,000 in 2023-24 and then to £3,000 from April 2024.
That sequence matters more for landlords than the headline tax total alone suggests. A sale that once left enough room for a modest gain to pass under the allowance now reaches the CGT net far sooner, particularly for smaller investors disposing of a single rental home after several years of price growth.
Autumn Budget moves are still shaping landlord decisions
This follows Landlord Knowledge’s earlier report on capital gains tax changes affecting landlord incorporations. The new annual figures add another layer to that tax pressure, suggesting 2024-25 became a year when investors acted before expected rule changes and then dealt with a much tighter allowance regime once they sold.
HMRC’s commentary points to investors realising gains ahead of the October 2024 Budget, when main CGT rates increased from 10 percent to 18 percent for basic-rate taxpayers and from 20 percent to 24 percent for higher-rate taxpayers. Residential property rates were already higher, but the broader mood around tax reform appears to have pulled more disposals forward.
For landlords, the practical point is timing. Any owner weighing a sale, transfer into joint names, or longer-term restructuring now needs to model the tax cost earlier in the process. Waiting until a buyer is found is no longer enough when the allowance is smaller and HMRC is drawing more people into digital reporting at the same time.
What this means for landlords
- If you are planning a sale: run the CGT numbers before listing, not after accepting an offer.
- If you hold older high-gain properties: check whether joint ownership, phased disposals or other planning steps are still available.
- Watch for: any Autumn Budget move that changes rates or reliefs again.
- If you are restructuring: take tax advice early if incorporation or reinvestment is part of the plan.
- Bottom line: CGT is catching more landlords, and the bill on exit is rising faster than many expect.
Editor’s view
Landlords have spent much of 2026 focusing on compliance and financing. HMRC’s annual CGT data is a reminder that exit costs still shape the market just as strongly. A smaller allowance may look technical on paper, but it changes behaviour in the real world.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 28 August 2026
Sources: HM Revenue & Customs
Related reading: HMRC says 436,000 met first landlord MTD deadline
