Budget 2025: Rachel Reeves plans stamp duty holiday for investors

Chancellor Rachel Reeves is reportedly set to announce a three-year stamp duty holiday for new UK stock exchange listings in Wednesday’s budget in a bid to revive London’s flagging financial market.

The proposed scheme would exempt investors from the current 0.5 per cent stamp duty on shares in newly listed UK companies for three years following their initial public offering (IPO), providing a significant incentive for new domestic listings.

The initiative aims to improve the competitiveness of the London market and address concerns that it is losing ground to overseas rivals.

Many firms have fled abroad in recent years, including gambling giant Flutter, owner of Paddy Power, which has shifted its main listing to New York.

Other British companies were also acquired by foreign rivals.

Emma Wall, chief investment strategist at Hargreaves Lansdown, said the stamp duty move would be a “welcome boost” for London’s IPO market and demand for UK shares.

He said: “London has been losing out to New York in recent years as businesses prefer the financing and regulatory environment of the New York Stock Exchange.

“But if this Budget rumor turns out to be true, this could be the carrot British businesses need to fill for local listing.”

He said the three-year stamp duty holiday would “make British buying more attractive to investors and help alleviate concerns some businesses have about demand for UK shares”.

“If this goes ahead, it will help reinforce the Government’s statement that it is both pro-business and supportive of a growing retail investment culture in the UK,” he added.

The Treasury was contacted to get an opinion on the issue.

It was also revealed on Monday that the Chancellor will hit thousands of Britain’s most expensive properties with a new “mansion tax” levy.

He is also accused of planning to launch a tax raid on savers after the Chancellor cut the cash ISA limit from £20,000 to £12,000.