A combination of soaring property values and selling by buy-to-let investors drove up HM Revenue & Customs' annual take from capital gains tax (CGT) by 25% to £6.9bn, the latest figures reveal.
CGT receipts for 2014-15 represent the highest yield since 2007-08, the year of the credit crunch, while just two years ago, CGT brought in £3.9bn to HMRC.
The rise in property prices, which has seen the price of an average family home in the Greater London area increase by around 86% over the past 10 years, was widely cited as driving CGT receipts.
"A huge amount of CGT is now being extracted from the residential property market and BTL investors in particular," said Mark Giddens, head of the London private client team at UHY Hacker Young. He added: "As house prices rise, more and more BTL investors are finding that their property sales are leaving them exposed to significant CGT bills."