PRESS RELEASE
31 October 2014
Figures show CGT take continues to rise, but remains half of pre-crash levels
HM Revenue & Customs (HMRC) has today published its latest yearly figures on capital gains tax (CGT), which
show that the numbers of individual taxpayers liable for CGT – as well as the overall tax liability – continues to
rise steadily.
For 2013-14, CGT intake reached nearly £3.5 billion from some 154,000 individuals, up from 148,000 last year.
The number of CGT-liable trusts also rose slightly to 15,000, but tax liability fell slightly as compared to the year
prior. Overall, CGT liability – including both trusts and individuals – remained nearly half of what it was before
the economic crash, down from £7.7 billion in 2007-08 to £3.8 billion in 2013-14.
This year’s CGT figures are based upon the disposal of assets in 2011-12 worth a total of £49.0 billion, with
chargeable gains of £23.2 billion. Financial assets made up 83% of all disposals and 71% of total chargeable
gains. Of the remainder, residential property represented the largest component, accounting for 55% of nonfinancial disposals and 46% of non-financial gains.
In terms of regional trends, London and the South East comprised some two-fifths of individuals who were
liable to CGT in the UK in 2012-13, and the North East and Northern Ireland had the fewest CGT-liable
taxpayers.
Interestingly, claims for Entrepreneurs’ Relief fell for the first time to around 36,000 claimants (down from
about 40,000), as did their total tax paid.
James Hender, partner and Head of the Private Wealth Group at Saffery Champness, comments:
“The taxman’s take stemming from CGT continues its steady rise, with increasing numbers of individuals being
caught in its net. It is interesting to note that CGT levels have not gained back the ground lost in terms of
revenue for HMRC as a result of economic crash in 2007 and 2008, and currently represent only about half of
their previous value despite the general economic recovery.
“In future years, we are likely to see significantly increased levels of tax on capital gains in these figures,
given the taxman’s imminent plans to target foreign owners of UK property when it comes to CGT. Given the
significance of property transactions to CGT revenues, this boost will no doubt be welcomed by the Revenue as
it tries to gain back some of the ground lost as a result of the challenging recent economic conditions.”
- ENDS James Hender, Saffery Champness
Matthew Wright/Scott Addison, Infinite Spada
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Notes to editors:
About Saffery Champness
Saffery Champness has almost 600 people, including 72 partners and directors. The firm operates from nine
offices in the UK, plus offices in Geneva, Guernsey and Zurich. The firm was founded in 1855 by Joseph John
Saffery.
Saffery Champness has worldwide associations in over 100 countries through its membership of the global
association Nexia international.
For further information about the firm, please visit www.saffery.com.