The Coalition is planning to raise CGT from 18pc to “closer” to the 40pc but, fighting the corner for Britain’s budding entrepreneurs, Lord Sugar of Clapton in the Borough of Hackney says it will have a “devastating impact on enterprising people”.

He told the House of Lords:

“In this day and age [£2m] falls short of the aspirations of real growth companies.”

“Payout [on exit] is the ultimate goal for such entrepreneurs and their employees who have been incentivised with approved share option schemes.”

“Raising capital gains tax rates will… depress their desire to work hard and the most devastated will be those business or asset owners who have worked hard and are reaching an age where they are wishing to consider a sale.” (Daily Telegraph)

Entrepreneurs’ relief provides business owners with a one-off 10% rate for the first £2m of capital gains; further gains are taxed at 18%.