London Stock Exchange welcomes the abolition of Stamp Duty on AIM-quoted shares

London Stock Exchange today welcomes the abolition of stamp duty on growth market shares, including AIM-quoted stocks, which will come into effect from Monday 28 April.

Xavier Rolet, CEO, London Stock Exchange Group said:

"Growth companies form the backbone of the UK’s economic recovery and it is vital we ensure they are able to access growth capital as effectively as possible. The abolition of stamp duty on shares admitted to  AIM  will help attract more investment and  liquidity into  some of the UK’s most ambitious, dynamic and innovative companies. The UK government should be applauded for this important step supporting efficient investment into Britain’s growth companies.”

Stamp Duty can account for a significant proportion of transaction costs and removal of the tax will have a significant signalling impact to the investor community. The increased investor interest in AIM companies will help reduce the cost of capital for these companies over the medium to long term, which should directly impact valuations and attract further investor interest in UK equities, resulting in further UK economic growth.

Additional commentary on the abolition of Stamp Duty:

Chris Stevenson, Vice President, Barclays Stockbrokers:

“Since its launch in 1995, AIM has received significant interest from investors. The abolition of stamp duty and stamp duty reserve tax on growth market shares is likely to make AIM stocks more attractive to those investors who are prepared to accept the greater volatility that these assets can offer. Recent research conducted with clients of Barclays Stockbrokers shows that 36 per cent of respondents are planning to increase their AIM share holdings following the removal of stamp duty.”

Andy Crossley, Head of Corporate Sales and Syndication for Peel Hunt Llp    

“By abolishing stamp duty on the purchase of AIM shares, more money will go into investment and less in costs, making shares in the market for smaller growing companies more attractive to both institutional and retail investors. This will increase trading, improving liquidity and means exciting, growing companies will have greater access to capital to take advantage of the opportunities in front of them creating wealth and jobs.”

Guy Knight, Sales and Marketing Director, The Share Centre

“This is a positive measure that we have been campaigning for on behalf of the personal investor for many years and we hope it will encourage more people to invest in the AIM market. Improved liquidity should tighten spreads, making AIM investing even more attractive. Investors who hold AIM shares in an ISA benefit further from the returns on their investments as they will no longer have to pay capital gains tax, income tax, inheritance tax or stamp duty.”

Nick Conyerd, Director of Market Making, Shore Capital:

"We very much welcome the latest Government initiative to stimulate the AIM market. The move to abolish stamp duty on AIM Companies, in conjunction with other measures such as AIM inclusion in ISAs, can only serve to make our market even more attractive to investors and companies alike. These actions should help further drive investment in what is the most successful growth market in the world."

Stuart Welch, CEO of TD Direct Investing:

"As well as attracting a new wave of investors, the removal of stamp duty from AIM stocks will help certainly reinforce AIM’s position as one of the world’s most successful growth markets.
At TD, we saw a significant increase in interest in AIM stocks in the months following their inclusion into ISA accounts in August 2013 and expect to see a further increase in them in the coming months as a result of this initiative."

Dr Tim May, Chief Executive, Wealth Management Association:

“AIM is a very important market for WMA member firms and their retail clients accounting for nearly 25 per cent by volume and over 10 per cent by value of all retail trades month on month. Following the Government’s decision to allow AIM shares into ISAs from August 2013 we therefore very much welcome the abolition of stamp duty on AIM shares as a further incentive to encourage retail investment in smaller growth companies and as a way of assisting retail investors and helping further stimulate economic growth.”

Julian Palfreyman, Chief Executive Officer, Winterflood Securities Limited:

"We welcome the abolition of stamp duty on secondary market trading in AIM securities as we believe this will ultimately help small growing companies access capital more efficiently. These companies are the true drivers of future growth and employment and we support any initiative that recognises this and helps the cause. Along with this news, the recent initiatives to encourage saving and investment in AIM companies by allowing them to be put into Individual Savings Accounts (ISAs), is recognition of the importance of these companies to the Economy."

The move to abolish Stamp Duty on growth market quoted companies has been supported by a broad group of market participants, including:

  • British Venture Capital Association
  • CBI
  • CentreForum
  • City of London
  • Mayor of London
  • NESTA
  • Quoted Companies Alliance
  • Tax Incentivised Savings Assocation
  • Tech City Investment Organisation
  • UK Bioindustry Association
  • UK Business Angels Association

 

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Tom Gilbert

+44 (0)20 7797 1222

newsroom@lseg.com

Notes to editors:

About London Stock Exchange Group:

London Stock Exchange Group (LSE.L) is a diversified international exchange Group that sits at the heart of the world's financial community. The Group can trace its history back to 1801.

The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and the pan-European equities platform, Turquoise. Through its markets, the Group offers international business, and investors, unrivalled access to Europe's capital markets.

Post trade and risk management services are a significant and growing part of the Group’s business operations. LSEG operates CC&G, the Rome headquartered CCP and Monte Titoli, the significant European settlement business, selected as a first wave T2S participant. The Group is also a majority owner of leading multi-asset global CCP, LCH.Clearnet.

The Group offers its customers an extensive range of real-time and reference data products, including Sedol, UnaVista, Proquote and RNS. FTSE calculates thousands of unique indices that measure and benchmark markets and asset classes in more than 80 countries around the world.

London Stock Exchange Group is also a leading developer of high performance trading platforms and capital markets software. In addition to the Group’s own markets, over 30 other organisations and exchanges around the world use the Group’s MillenniumIT trading, surveillance and post trade technology.

Headquartered in London, United Kingdom with significant operations in Italy, France, North America and Sri Lanka, the Group employs approximately 2,800 people.

Further information on London Stock Exchange Group can be found at: www.lseg.com