The lifetime limit on capital gains qualifying for entrepreneurs relief will be doubled to £10m from April to make the UK more attractive for entrepreneurs.
In the Budget, Chancellor George Osborne also announced a 15 per cent increase in availability of credit to small businesses in a deal agreed between Government and the banks.
From April 2011, all start-ups and businesses with fewer than 10 employees will be exempt from new domestic regulation for the next three years.
Osborne said: “The lack of start-up capital has long been a problem in the British economy. Too often, we have great ideas in Britain but it is other countries that exploit them.”
The Chancellor added small businesses were “the innocent victims of the credit crunch”.
The Government will also invest £180m for up to 50,000 additional apprenticeship places over the next four years.
National Skills Academy for Financial Services chief executive Sylvia Perrins says: “The success of the scheme will depend on employers, who must create demand to generate new places by opening up opportunities for apprenticeships within their workplaces.”