The UK Treasury is reportedly considering a temporary
exemption from stamp duty for shares of newly listed companies on the London
Stock Exchange, as Financial Times reported. The measure is part of efforts to
support the city’s public markets, which have seen lower listing activity
compared with some smaller international exchanges.
The proposed exemption would remove the 0.5 per cent tax on
share purchases for companies that have recently floated. Sources indicate it
could apply for two to three years following a company’s listing. Shares issued
at the point of an initial public offering are already exempt.
Stamp Duty Seen Affecting Listing Decisions
Officials expect the measure to encourage more companies to
list in London and may increase retail participation in the market. Industry
representatives have highlighted stamp duty as a factor in decisions about
where to list.
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Data from Dealogic shows that in the year to September, the
New York Stock Exchange and Nasdaq combined raised $52.8 billion through
listings. London’s main and junior markets raised $210 million, while AIM,
which is already exempt from stamp duty, raised $142 million. Stockholm led
European IPO activity with $2.9 billion raised.
There are growing hopes for a revival for London’s moribund IPO market after reports chancellor Rachel Reeves is preparing to unveil a stamp duty exemption on shares of newly-listed companies.The move, which is set to be announced at the forthcoming Budget in November, would… pic.twitter.com/PjfoXkEgoi
— City A.M. (@CityAM) October 2, 2025
Treasury Weighs Exemptions for London IPOs
Recent planned listings in London are set to bring renewed
activity to the market. Chancellor Rachel Reeves has indicated support for
campaigns encouraging UK residents to invest in shares.
You may find it interesting at FinanceMagnates.com: Revolut
Eyes $75 Billion Market Debut with London and New York Listing.
Proposals are also being considered to make it more
attractive for entrepreneurs to list in London, including potential tax relief
on IPO proceeds if the business and director remain in the UK.
Stamp duty raised £3.2 billion for the Treasury last year.
Government officials have noted that any exemptions would be considered in the
context of public finances and broader policy objectives.
This article was written by Tareq Sikder at www.financemagnates.com.
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