Investigations into underpaid capital gains tax by HMRC have more than tripled in the past year.
Research by UHY Hacker Young revealed there were 14,223 investigations into suspected underpayment of CGT completed by HMRC in the past 12 months, a 4,564 increase on the previous year.

It also revealed a total of £202.4mn in underpaid CGT was recovered from those investigations in the last year, a rise compared to the £180.8mn recovered in the previous 12 months.

According to UHY Hacker Young, individuals who have engaged with investing through TikTok and Instagram, may lack the resources or awareness to track profits accurately and file a CGT return correctly.

Brian Carey, tax partner at UHY Hacker Young, said: “With Gen Z embracing non-traditional investments like crypto and meme stocks, HMRC is concerned it is missing out on a lot of unpaid CGT.”

The firm has warned with recent cuts to CGT allowance many more people could be liable for CGT without realising.

From April 2025 the annual CGT tax-free allowance will halve to £3,000, bringing more people into the scope of the tax, including those who may not have considered their tax obligations on investments or property sales.

“HMRC’s crackdown on unpaid CGT is a stark reminder that your tax obligations cannot be ignored, no matter the source of your profits,” Carey added.