Rachel Reeves has sparked a rush on gold as wealthy households race to save their money from a tax raid at this month’s Budget.

The Royal Mint reported sales of gold coins, which are exempt from capital gains tax, rose by 118pc between July and September.

The Chancellor is widely expected to raise billions of pounds in taxes targeting the nation’s wealthiest. This includes increasing capital gains tax (CGT), which will reportedly rise from its level of 20pc on shares and most other assets for higher-rate taxpayers.

More people are seeking to exploit the tax-efficient status of gold coins, the Mint has said. CGT is levied on gold and silver when it is sold but not on bullion coins issued by the Mint. The rush has led to a 20pc surge in the sterling gold price so far this year.

Stuart O’Reilly, of the Royal Mint, said: “With the UK budget approaching and uncertainty surrounding the US election, we may see further shifts in investor behaviour.

“Our data suggests investors are increasingly keen to protect their future investment gains, favouring capital gains tax-exempt investments such as bullion coins over products that are subject to capital gains tax.”

Between July and September, revenues from sales of silver and gold increased by 42pc and 118pc respectively, compared with the same period last year.  However, sales of bullion bars – which are subject to CGT – fell by 11pc year-on-year.

Labour has sent investors into a frenzy over its plans to raise some £40bn in taxes at the forthcoming Budget, with many buy-to-let investors fearing a hit.

The Treasury was recently forced to rule out rises in capital gains tax for second homeowners and buy-to-let landlords, according to a report in The Times.

Reports previously suggested the tax could be increased in line with income levies which could have forced higher-earning property investors to hand over as much as 45pc of their profits on homes to the taxman.

However, sources told The Times on Wednesday that a rise in CGT would apply only to the sales of shares and other assets while second homes would be exempt.