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Tax campaigners today demand a huge overhaul of the system to unlock vital extra funds for the NHS.

Theresa May has promised an extra £20billion a year for the health service by 2023, and hinted at fresh tax hikes to raise the cash.

Chancellor Philip Hammond is under pressure to reveal more details in his Budget on October 29.

(Image: PA)

But the Tax Justice UK group today publishes a series of proposals outlining a major shake-up which it believes will generate more than £23billion more for the NHS.

Plans include lifting corporation tax from 19% to 20%, scrapping entrepreneurs’ relief, reforming council tax, forcing older workers to pay National Insurance, curbing pension subsidies for the well off and taxing income from wealth at the same level as income from work.

Its 12-page report, The World We Want, suggests lifting Capital Gains Tax (CGT), which is charged on the increase in value of an asset.

At 10% and 20%, CGT rates are lower than taxes on income from work, which are 20%, 40% and 45%.

Bringing the two in line could generate £44billion, it claims.

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A long-overdue shake-up of council tax bands so they more accurately reflect property values could find £5billion, according to the report.

And making older workers pay National Insurance Reform could raise £1.3billion, the study says.

Reducing the pension subsidy for the wealthy could release £2billion, the group believes.

Adding 1% to corporation tax, which firms pay on profits, could generate £8.4billion, while abolishing entrepreneurs’ relief could raise £2.7billion.

Tax Justice UK’s executive director Robert Palmer: “Our proposal is just one way in which the Government could raise taxes to fund the NHS and promote a more equal and fairer society.

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“Any reforms along these lines would need to be accompanied by greater efforts to clamp down on tax avoidance and evasion.

“Ultimately this should be seen as a real opportunity to have a broader debate about the level of public services we want and how to pay for them.”