Reeves to announce stamp duty holiday for new LSE listings - report

(Sharecast News) - Chancellor Rachel Reeves will reportedly announce a three-year stamp duty holiday for new listings on the London Stock Exchange in Wednesday's Budget. According to Bloomberg, citing people familiar with the matter, the exemption will mean investors won't have to pay the tax on purchasing shares of companies that are newly-listed in the UK, which is currently levied at 0.5%.

Sources said the Treasury had been deliberating over how long to apply the exemption for and had settled on a three-year holiday following a company's flotation.

The chancellor set up a listings task force in July in a bid to revive the ailing market.

Emma Wall, chief investment strategist at Hargreaves Lansdown, said such a move would be "a welcome boost for the UK stock market".

"London has been losing out to New York in recent years, as businesses favour the funding and regulatory environment of the NYSE," she said. "But if this Budget rumour proves accurate, it may be the carrot British businesses need to plump for a domestic listing.

"Currently investors have to pay 0.5% stamp duty tax when they buy shares, but this is expected to be waived for new listings for up to three years - though this has not yet been confirmed. This would make buying British more enticing for investors and help redress some businesses' concerns about demand for UK shares.

"If this goes ahead, it would help strengthen the Government's stated position that they are both pro-business and supportive of a growing retail investment culture in the UK."