Ahead of tomorrow’s highly-anticipated Budget, Emma Wall, Chief Investment Strategist at Hargreaves Lansdown has weighed in on the rumours of a stamp duty holiday for new listings on the London Stock Exchange.
The Chancellor is expected to announce a welcome boost for the UK stock market in tomorrow’s Budget – a stamp duty holiday for new listings on the London Stock Exchange. London has been losing out to New York in recent years, as businesses favour the funding and regulatory environment of the NYSE. 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.
