The government's claim that proposals to change capital gains tax (CGT) will improve the fairness of the UK's tax system have been questioned by a leader economic think tank.

The Adam Smith Institute believe that the proposal to increase CGT to levels in line with income tax rates could cost the UK economy between £3bn and £5bn and lead to over 60,000 people losing their jobs.

"The idea that one should increase CGT in the name of ‘fairness', irrespective of its effect on revenues and the wider economy, is predicated on a fundamental misconception: that CGT is paid primarily by the rich," said the ASI in its report.