Rishi Sunak plans to raise £3bn by scrapping 'entrepreneurs' relief'

Chancellor seeks spending room by axing relief on capital gains when a business is sold

The chancellor is planning to scrap a 3bn tax relief that mainly benefits the wealthy in a bid to raise cash for an expected increase in public spending in the budget on 11 March.

Rishi Sunak is expected to target entrepreneurs' relief, a tax break which halves the capital gains tax paid when people sell their businesses. Under current rules, sellers pay only 10% on lifetime gains of up to 10m, comparedwith the 20% capital gains tax paid by higher-rate taxpayers.