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Stamp duty to be abolished for AIM shares

The Chancellor said:  "It is a Budget for "a Britain that wants to be prosperous, solvent and free".  There will no doubt be those who will take issue with that statement.However, it is at least true The Chancellor said:  "It is a Budget for "a Britain that wants to be prosperous, solvent and free".  There will no doubt be those who will take issue with that statement.

However, it is at least true to the extent that, from April 2014 transactions in UK company shares listed on AIM and other small company growth markets will be free of stamp duty and stamp duty reserve tax.

This has been lobbied for extensively, as part of a broader desire to encourage investment in AIM and similar companies and, in particular, to support equity-raising as a means of raising funding as an alternative (or addition) to traditional debt finance.

The Chancellor did not take the opportunity to broaden the scope of capital gains tax reliefs (for instance broadening out the eligibility criteria for entrepreneurs' relief), which might have more significantly encouraged investment in smaller companies, but the Budget was, again, set against a backdrop of austerity and fiscal challenges for the Government.

The stamp duty abolition (which was not the only stamp duty abolition in the Budget....more blogs to follow) is to be welcomed as a positive step.

 

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