The Institute for Public Policy Research (IPPR) claimed that low rates of CGT have been an ‘effective tool for encouraging entrepreneurship’, calling for CGT to be aligned with income tax.

Research fellow at the IPPR, Pranesh Narayanan said: ‘The recent fearmongering from some that increasing capital gains tax will take the economy back to the stone ages is pure hyperbole.

‘It was famously pro-growth Conservative chancellor Nigel Lawson who equalised capital gains tax with income tax rates in the first place.

‘We have spoken to multiple millionaires in the last few weeks who have made it clear that equalising capital gains tax with income tax would make absolutely no difference to their investment or entrepreneurial pursuits.’

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