In a paper for the Centre for Policy Studies co-written with Institute of Directors senior policy adviser Corin Taylor, Forsyth says that CGT should be raised to 20 per cent and 40 per cent from its current flat rate of 18 per cent.
Forsyth also argues that a ten-year taper rule should be introduced on CGT so that the tax is not payable on longer-term gains, in order to stimulate growth in the economy.
The paper also pushes for the 50p tax rate for high earners and the phase-out of the personal allowance for those earning above £100,000 not to be introduced next year.
He also says the main rate of corporation tax should be reduced to 20 per cent in a bid to attract overseas business to the UK and that stamp duty on share transactions should be abolished.
The paper estimates the cost of implementing the tax reforms at under £5bn.