The chancellor has announced that anyone who owns or invests in a SME will pay less Capital Gains Tax (CGT) than he had originally announced.
Alistair Darling told MPs that a system of "entrepreneurs' relief" would be available on the first £1 million of gain made by anyone selling all or part of a business or its assets.
Gains made by "certain individuals" involved in running the business would also be eligible for the same discount, he said.
The relief applies to the first £1 million of any gains, with GCT being charged at ten per cent in these circumstances, rather than the normal 18 per cent.
Recently the government has been criticised by some for its attitude to small businesses.
The Professional Contractors Group says it has obtained more than 3,000 signatures for a petition objecting to planned legislation to introduce an income shifting tax.
Meanwhile, Conservative MP Mark Prisk recently accused the government of taxing small firms to death.
