The UK Treasury is considering a stamp duty holiday for new share listings on London stock exchanges, according to reports.
Chancellor Rachel Reeves is expected to announce an exemption on the 0.5% tax on share transactions for newly listed companies at the Autumn Budget on 26 November to boost investment in the UK markets.
According to the Financial Times, the tax holiday could take effect for two or three years, although it is understood that no final decisions have been made, and there are several options being considered.
Currently, stamp duty is levied on UK-listed shares when investors buy them.
Matthew Beesley, CEO at Jupiter Asset Management, welcomed the suggestion of a stamp duty break, which he said would prove most beneficial to smaller companies.
“A stamp duty holiday for companies listing on the London Stock Exchange is a decisive and welcome step from the government towards reviving the City’s fortunes.
“While we await confirmation and full details of the proposal, it is to be hoped that the exemption could be applied to a wider array of smaller companies that are more likely to benefit from growth capital.
“If this stamp duty reprieve applied to all companies outside of the FTSE100, this would encourage investment and capital flows into medium and smaller businesses as well, which are important growth engines for the UK economy.”
