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 Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term 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.

Industry participants have highlighted broader concerns over London’s stock market, noting declining IPO activity and low retail investment.

Brokers such as IG Group have called on policymakers to address these challenges, citing a persistent savings-first approach among UK investors. The broker has specifically urged consideration of measures including the removal of stamp duty on share purchases to encourage investment.

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.

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