More capital gains tax paid by fewer individuals

In 2019-20 265 000 taxpayers paid capital gains tax £9.9bn. This liability was realised on £65.8bn of gains. This liability represents an increase of 3% over 2018-19 but the number of taxpayers decreased (6%).

According to statistics released by HMRC most capital gains tax comes from the small number of taxpayers who make the largest gains. In 2019-20 41% of the tax paid arose from taxpayers who made gains of at least £5m. This group represents less than 1% of capital gains taxpayers each year.

About 28% of the tax came from disposals that qualified for entrepreneurs’ relief. This relief was claimed by 46 000 taxpayers on £28.9bn of gains resulting in a total tax charge of £2.8bn. This is the highest amount of gains and tax since the introduction of the relief.

Revised statistics for 2018-19 tax year show taxpayers disposed of 1.1m...