12:00 AM, 2nd March 2026, 17 hours ago
A record-breaking £16.9 billion in capital gains tax (CGT) revenue was claimed by HMRC in January, according to The Office for National Statistics (ONS)
Simply Business says the CGT surge is down to a mass exodus of landlords leaving the private rented sector.
The news comes as HMRC property transactions for January revealed a drop in activity.
Spike in CGT revenue
Residential property CGT currently applies at 18% within the basic-rate band and 24% above that. According to the ONS, HMRC collected £16.9 billion in CGT in January 2026, 69% more than the previous year.
Simply Business warns the spike in CGT revenue points to a high number of landlords leaving the market.
The insurance company said on its website: “Back in the summer of 2024, there was widespread concern that the new government would align capital gains tax rates with income tax (potentially hitting 45%). As a result, it’s likely that some landlords rushed to sell before the 2024 Autumn Budget.
“Even though the rate only rose to 24%, some landlords may already have sold their properties. The record tax revenue we see now could partly be those landlords finally settling their bills by the 31 January deadline.”
However, the insurer said the surge in receipts may also reflect changes to allowances rather than rates alone.
The website added: “The tax-free capital gains tax allowance was slashed from £12,300 in 2022 to just £3,000 today. This means smaller-scale landlords who previously wouldn’t have owed anything now pay tax when they sell a property.
“For higher-rate taxpayers, the rate is now 24%, which generates a significant amount of tax revenue.”
Year of firm footing
The news comes as HMRC data shows UK residential property transactions totalled 94,680 in January 2026, marginally lower (by less than 1%) than January 2025 and 5% down on December 2025.
Frances McDonald, director of research at Savills, said “January’s housing market has started the year on a firm footing, with transactions running ahead of both 2024 and 2023 on a non-seasonally adjusted basis, up 19% and 6%, respectively.
“A notable proportion of these deals will have been agreed in the days and weeks following the Chancellor’s Autumn Budget, as sentiment improved following clarity on fiscal policy.
“Looking ahead, the latest Bank of England data shows the average rate on a two-year fixed mortgage has now fallen to its lowest level since 2022. This continued easing in borrowing costs should help build momentum through the early spring, particularly among first time buyers who stand to benefit most from improved mortgage rates.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “These numbers are always useful as they provide an overview of what’s happening in the whole market, not just mortgaged but cash sales too.
“The data is a little historic although interesting as it covers the period immediately after the Budget when uncertainty reigned, so ‘marginally lower’ transactions is a positive in our view.
“We are finding much the same. Most sales are proceeding and relatively few folding without good reason but increased choice means buyers are taking their time with little urgency to complete quickly.”
Property118 commercial reality check
Large receipts do not automatically equal panic. They reflect crystallised gains, forward planning ahead of Budget speculation, and strategic exits. Some landlords are choosing to exit on their own terms. Others are reshaping portfolios to protect yield and reduce exposure.
If you are considering selling, it is worth reviewing this guide on calculating Capital Gains Tax before making any decisions:
What landlords should do next
Model the numbers before emotion takes over
Calculate potential CGT at 24%, deduct acquisition and improvement costs, and compare net proceeds against five years of projected rental profit. Decisions improve when spreadsheets lead.
Rank assets by performance
Identify the bottom 15% by net yield or management intensity. Selective disposals can strengthen cash flow and reduce risk concentration.
Plan capital with intent
Decide in advance whether released funds reduce debt, improve gearing ratios below 65%, or redeploy into higher-yielding stock.