Britain’s government collected a record £24.2 billion (HK$220 billion) in capital gains tax during the 2024-25 fiscal year, surging 89 percent year-on-year, as Labour’s tax hikes on businesses continue to bolster public finances.
The robust tax gain may intensify calls for the government to impose levies on the lucrative banking sector in the upcoming budget, including HSBC (0005) and Standard Chartered (2888).
The number of capital gains taxpayers surged 45 percent over the period to a record high of 584,000.
Notably, the data revealed that individuals with gains of £5 million or more - fewer than 1 percent of all capital gains taxpayers - accounted for 45 percent of total revenue.
The Labour government is expected to announce further tax increases in its first budget scheduled for October, though some officials caution that raising capital gains tax rates further could drive taxpayers toward asset-based avoidance schemes.
Earlier, Sky News reported that UK Finance - the influential trade body whose members include Barclays, HSBC, Lloyds Banking Group and NatWest Group - warned the government in a letter that further tax rises on the banking sector would risk "damaging the UK's international competitiveness."
Echoing the concern, HSBC chief executive Georges Elhedery has said that "UK growth needs strong banks" in response to the potential levy.
