Pensions expert Steve Webb has warned that an extra 2.5m taxpayers could face being dragged into the higher rate tax over the course of the current Parliament.

Government receipts from Capital Gains Tax have rocketed by £5bn in two years, prompting a warning that more clients face being hit by the tax.

A surge in the registration of new and existing trusts with HMRC is expected ahead of the deadline of 1 September.

Chancellor Rishi Sunak has promised to cut the basic rate of income tax to 19p in the pound from the current rate of 20p.