Millionaire investors call for increase in capital gains tax

Rachel Reeves has been urged by a group of millionaire business owners to raise £14bn from an increase in capital gains tax in this month's budget, arguing it would have no impact on investment in Britain.

- Richard Partington

Before the chancellor's set-piece event on 30 October, the group of wealthy investors said increasing the tax rate on asset disposals would help to raise vital funds for public services and would not lead to slower economic growth.

In a report by the centre-left IPPR thinktank, which carries influence with the Treasury, the millionaire entrepreneurs said they would welcome an increase in the rate levied on capital gains to match the higher rate of income tax.

The report showed that capital gains tax (CGT) was not a primary driver of investment decisions, with entrepreneurs more focused on issues including access to financing, market opportunities and broader economic conditions.