By Chris Dorrell The government would be playing a “dangerous game” by hiking capital gains tax and could end up slashing its own revenue, the Centre for Policy Studies (CPS) warned today. With just a week to go until the Budget, the Chancellor Rachel Reeves looks likely to lift the levy on capital gains as she seeks to raise £40bn through a series of punitive revenue-raisers and spending cuts. But the CPS pointed out that the charge – which raised £14bn last year – makes 80 per cent of its revenue from just 38,000 people, meaning is particularly sensitive to behavioural changes. “Labour is pl…