CGT and NIC increases have helped push HMRC tax receipts higher. For 2025/26, the amount of tax collected by HMRC increased by 9.3% compared with the previous year.
That rise is not surprising. Capital gains tax rates have gone up, and employer National Insurance contributions have also increased.
For business owners, landlords, employers and higher earners, the figures are a useful reminder. Tax changes do not just affect HMRC receipts. They can also influence decisions around disposals, staffing, business structure and longer-term planning.
CGT receipts have risen sharply
Capital gains tax receipts for 2025/26 were 62% higher than in 2024/25.
CGT is sometimes described as an “optional tax”. This is because, in some cases, it can be avoided by postponing disposals.
There is also no CGT charge on death. In addition, future governments may decide to reduce CGT rates.
However, those who sold assets faced higher rates. The main CGT rates increased from 10% and 20% to 18% and 24%.
Many landlords may have sold property before the Renters’ Rights Act 2025 came into force. Business owners could also have saved 4% by selling before 6 April 2026.
Planning around CGT
There is limited scope during someone’s lifetime to escape CGT on buy-to-let properties.
However, those with a substantial investment portfolio may want to think carefully before making disposals. This may be particularly relevant if they plan to retire abroad.
With careful planning, CGT may be mitigated. Professional advice is essential here.
In some cases, the tax saved could help make a better standard of living in retirement more affordable.
Employer NIC receipts have also increased
Receipts from Class 1 employer NICs have gone up to nearly £144 billion.
That is an increase of more than £35 billion.
For most employers, there is limited scope to avoid the increases that came in from April 2025.
However, some unincorporated businesses may consider taking on senior staff as partners. In many cases, this would probably be as limited partners, to prevent personal liability if the business fails.
There has also been speculation about the possible introduction of some type of employer NICs on partnership profits.
Frozen thresholds are also having an impact
Income tax receipts have risen less sharply than CGT and NIC receipts.
Even so, frozen thresholds and allowances are continuing to take effect. More taxpayers are being drawn into higher tax bands over time.
Some higher earners may consider moving to a more tax-friendly jurisdiction.
If the overseas stay is long enough, this could help avoid CGT on the disposal of investments.
What this means for planning
The latest figures show how CGT and NIC increases are feeding through into the wider tax system.
For business owners, the impact may be felt in different ways. Some may need to review the timing of asset disposals. Others may need to look again at staffing costs, business structure or longer-term retirement plans.
There may not always be a simple way to reduce the tax cost. However, there is often value in reviewing the position before decisions are made.
Tax planning works best when it is done early. That is especially true where disposals, property, business sales, investment portfolios or overseas moves are involved.
Details of HMRC tax receipts and NICs can be found in HMRC’s official statistics.