An investment expert has welcomed the move by the chancellor to raise capital gains tax (CGT) for higher tax payers.

In his Budget yesterday (June 22nd), George Osborne announced that higher tax payers will have a CGT of 28 per cent imposed upon them, up from the 18 per cent that it currently stands at.

Although not as high as the 50 per cent that some predicted, the rise was welcomed by David Doulton, director at Fair Investment Company, who believes it will help get rid of some tax 'loopholes'.

He added: This at least means that if higher rate tax payers do choose to invest in assets rather than pay 40 per cent on an income generating asset, they will be paying more tax than a lower or middle earner paying 18 per cent CGT and 20 per cent income tax .

And long term savers, like older people with buy to let properties used for retirement planning who are subject to CGT when the sell assets, will not be hit by the rise.

Another important announcement was the setting up of a Green Investment Bank, aimed at driving investment in clean energy and green technologies .