The Capital Gains Tax changes attracted much criticism

In October's pre-Budget report, Mr Darling announced that CGT taper relief would come to an end from 1 April 2008 and a new single 18% band would apply.

The move was widely criticised by business groups and Mr Darling said he would look again at the issue.

There is speculation that taper relief could be reintroduced for small firms.

Taper relief currently allows some higher rate taxpayers to pay as little as 10% CGT on profits from the sale of assets in any unlisted company or publicly-listed firm they work for, as long as they have held them for two years.

It can also reduce the CGT liability for some basic rate taxpayers to 5%.

Business groups say the withdrawal of taper relief will discourage investment and entrepreneurship.