Treasury takes £1.4billion capital gains tax hit - the wealthy flee Britain as Rachel Reeves struggles to balance the books
The nation's coffers have missed out on more than £1billion in capital gains taxes after wealthy individuals quit the UK in their droves.
New figures from HMRC reveal capital gains tax (CGT) paid to the Treasury dropped by £1.4 billion in the 12 months to March.
The sharp fall in revenues comes as Chancellor Rachel Reeves struggles to balance her books.
Many non-doms – UK residents whose permanent home for tax purposes is outside the UK – and members of Britain's home-grown wealthy elite are leaving the country to escape the heavy tax burden on their assets and earnings.
High-profile defectors include top Goldman Sachs banker Richard Gnodde and British property tycoons the Livingstone brothers.
Inquiries about leaving the UK in the first three months of this year were nearly three times higher compared with the same period in 2024, according to Henley and Partners, which provides global relocation services. CGT is paid on profits on assets including second homes, stocks and shares.
Many non-doms – UK residents whose permanent home for tax purposes is outside the UK – and members of Britain's home-grown wealthy elite are leaving the country to escape the heavy tax burden on their assets and earnings. Pictured: File photo
At the start of this month, the rate rose from 20 per cent to 24 per cent for high tax rate payers following changes in Ms Reeves' Budget in October.
Non-domiciled people who live in Britain are for the first time having their worldwide earnings subject to UK tax after changes implemented by Labour last year.
Figures show the amount of CGT paid to the Treasury dropped by more than 10 per cent to £13 billion in the 12 months to March 2025, from £14.5 billion last year.
It is a blow for Ms Reeves, who is struggling to improve public finances amid a global trade war instigated by US President Donald Trump's tariffs.
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