If readers really understood the psychology behind entrepreneurship, they would appreciate that a prime motivator is actually creating an enterprise. They would also appreciate that, while capital growth may manifest, it may not immediately be tangible (Business loses in capital gains tax, Letters blog, letters.computing.co.uk).

I fully support the Chancellor's attempt to streamline the taxation system, including making capital gains tax (CGT) simpler to administer. It was absurd for entrepreneurs to invest in an enterprise, to asset strip that enterprise and then to be levied only about 10 per cent tax on their capital gains.

Perhaps readers will recall the antagonism shown by IT contractors towards the introduction of IR47.

Although previously IT techies may have bought an off-the-shelf company, paid themselves high dividends and avoided paying their fair share of tax and National Insurance, the Inland Revenue finally caught up with the tax dodge. Thankfully, they started paying their fair share of tax.

The same issue arises when levying CGT. Although there is absolutely nothing wrong with entrepreneurs accruing wealth from their endeavours, let us avoid any tendency to condemn a change simply because we may lose out on capital gains.

Rebecca Pidgeon