The Capital Gains Tax (CGT) on UK property service was used by 139,000 taxpayers to report 151,000 disposals of residential property in the 2022-23 tax year, according to figures released by HMRC.
This accounted for a total liability of £1.8bn.
The figures were similar to those from the 2021-22 tax year, which in turn showed a 56% and 60% increase in the number of disposals and total liability from the 2020-21 tax year.
This increase reflected a wider increase in activity in the residential property market following the first year of the Covid-19 pandemic.
It may also reflect more people using the CGT on UK property service since its introduction in the 2020-21 tax year.
Rachael Griffin, tax and financial planning expert at Quilter, said: “The data around CGT when it comes to property sales is significant.
“This data suggests that there is an exodus of landlords from the property market as the tightening of tax laws on Buy to Lets make them a more unattractive investment.
“Coupled with this the continuing high property values but simultaneous threat of a property price crash is seemingly making more landlords opt to sell up.
“How this ultimately impacts the market for all prospective buyers and renters is yet to be seen.
“Currently property prices are slipping slowly but rent remains sky high as renters compete for a dwindling stock of rental properties.”
