22 Feb 2024
Research carried out by the London School of Economics has revealed that less than 3% of adults in the UK paid capital gains tax (CGT) over the last decade to 2020.
The research showed that total capital gains nearly tripled over the last decade, reaching £65 billion by 2019/20.
According to the research, capital gains are 'incredibly concentrated', with three in every seven pounds of gains in the UK going to individuals earning over £150,000. 52.2% of all taxable gains in 2020 went to just 5,000 people, and gains are 'strongly concentrated' in southern England.
Almost 40% of individuals with incomes exceeding £5 million received some gains, the research highlighted.
Commenting on the data, Arun Advani, Associate Professor at the University of Warwick's Economics Department and CAGE Research Centre, said: 'Capital gains are absurdly concentrated, with half the gains in the entire country going to as many people as could fit in the Albert Hall. Less than one in thirty people have any gains at all over the course of a decade.'