Last week's announcement of a Conservative-Liberal coalition was initially greeted with relief in the City of London. The days of uncertainty and political wrangling over who would form Britain's next government had unnerved markets. As one politician remarked: "A few more days of this, and the next government of Britain may be the IMF."

However, the initial relief has turned to concern as it has become clear tax rises targeting the wealthy are imminent - despite a Tory prime minister being in power. An emergency budget has been promised and the coalition has made it clear that steep rises in capital gains tax rates to align them with income tax are on the cards, meaning headline rates of 40% or even 50% could be seen.