The government is enjoying a capital gains tax 'bonanza' ahead of its controversial CGT changes.

The CGT take will double between 2004/2005 and 2007/2008 to £4.6bn, according to Wilkins Kennedy. The firm suggested the boost was due to soaoring share prices and property prices in the last few years.

Controversial changes to the CGT regime by the government will bring in a further £2bn by 2011, it added.

'The government is enjoying a CGT bonanza right now, so the proposed changes to the CGT regime, which will hit small investors and lower rate taxpayers hardest and net a further £2 billion in CGT, seem doubly greedy,' said Wilkins Kennedy partner Roger Williams.

Further reading:

IoD urges lowering of CGT modifications