Abolish stamp duty on shares to reverse London’s IPO slump, say top fintechs
The group that represents the UK’s fastest growing fintech companies has called for the government to scrap stamp duty on shares to boost London’s flagging initial public offering market. Innovate Finance – which counts Revolut, Monzo and Zilch among its members – has called for the Treasury to ditch the 0.5 per cent levy on [...]
A coalition representing the UK’s most rapidly expanding fintech firms has urged the government to eliminate stamp duty on shares to invigorate London’s underperforming initial public offering market. Innovate Finance, an organization comprising Revolut, Monzo, and Zilch, has urged the Treasury to eliminate the 0.5 percent levy on UK stocks to promote British equity ownership and rekindle the London Stock Exchange’s appeal as a listing platform.
The body praised Chancellor Rachel Reeves’ three-year stamp duty holiday for new listings in her 2025 Budget, yet the measure has yet to trigger a surge in new listings. "Now is the time to abolish stamp duty on UK listed shares in entirety," Innovate Finance declared in a recent report. "Eliminating stamp duty on UK shares would eliminate this competitive disadvantage, stimulate additional domestic investment, enhance London’s allure for IPOs, and aid in reversing the decline in British ownership of UK companies."
Stamp duty on shares has "exposed" UK businesses to hostile takeovers, with total tax receipts for the levy surging 35 percent during the 2024 to 2025 fiscal year, with HMRC collecting £4.3 billion. Despite Reeves' efforts in her final Budget, policymakers have faced mounting pressure to enhance conditions for companies contemplating a public offering in the City.
Financial institutions have engaged the fintech sector - many of whom are vocal about their aspirations for a public debut - in a bid to entice them towards a London listing. Thought Machine's CEO previously noted to City AM that Reeves' alterations were "not sufficient to genuinely sway anyone's perspective, either in favor or against" listing in the UK.
Innovate Finance highlighted that the tax renders raising capital in the UK more costly and discourages domestic investment. "It exposes UK listed firms to reliance on foreign capital, takeovers, and relocation," the group added. The London market has been inundated with foreign takeovers over the past year. September began with a trio of London companies accepting private takeover bids in a single day.
FTSE 250 members Bodycote, Gamma Communications, and energy firm Capricorn each agreed to be taken private in deals valued at a combined £3 billion.
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