The British Private Equity and Venture Capital Association, the trade body for the UK industry, has branded proposals by the Liberal Democrats to more than double taxes on capital gains as "completely dotty" and "damaging".

In response to the proposals, which form part of the Liberal Democrats' UK election manifesto published today, a spokesman for the BVCA said: "This proposal is completely dotty and would be deeply damaging to the UK. The relatively low and stable rate we have had in the UK has been successful both at encouraging enterprise and raising revenue."