Box sets » Receipts » Capital gains tax
The impact of AI on the economy and public finances is highly uncertain. In this box, we explored how AI could affect productivity, the balance between labour and profits, and future tax revenues, highlighting the potential fiscal implications of a lower labour share of income.
Our March 2025 forecast for 2024-25 receipts is £7.5 billion below our October 2024 forecast. This box compared this shortfall to past Autumn to Spring forecast changes, explained the reasons for this shortfall, and described its impacts on the forecast.
The capital tax measures announced in the October 2024 Budget affected an overlapping set of taxpayers and tax bases, mainly across capital gains tax, inheritance tax and income tax. In this box, we considered how individuals can respond to an increase in a capital tax liability, and what we assumed about these behaviours in our costings for capital tax measures.
Receipts from capital gains tax (CGT), inheritance tax (IHT) and stamp duty land tax (SDLT) were expected to rise sharply over our March 2014 forecast. This box set out the drivers behind that rise, in particular the impact of rising effective tax rates.