In a significant move to revitalise the UK's capital markets, Chancellor Rachel Reeves has announced a major stamp duty exemption for newly listed companies as part of her Autumn Budget.
A Boost for London's Financial Hub
The Treasury's new initiative, revealed on Wednesday 26 November 2025, will eliminate the 0.5 per cent stamp duty rate that investors pay when purchasing shares in companies making their London market debut. This tax relief will apply for the first three years following a company's initial public offering (IPO).
The measure represents one of the government's most direct interventions to address concerns about the London market's competitiveness. It comes amid what many in the City have described as a prolonged period of struggle for the UK's primary stock exchange.
City Welcomes Budget Intervention
The announcement has been met with widespread approval from financial leaders. Dame Julia Hoggett, chief executive of the London Stock Exchange, welcomed the decision, stating it acknowledges "the vital role equity markets play in driving investment, innovation, and job creation."
She further emphasised that the holiday represents "an important first step in removing the distorting effects of this duty which has historically disincentivised investment in UK companies, especially for retail investors."
The sentiment was echoed by Steven Fine, chief executive of Peel Hunt, who has previously described stamp duty on shares as "a horrible tax" that "makes no sense whatsoever." While his firm has lobbied for complete abolition, Fine indicated the exemption provides a positive "indicator" of the government's direction.
Addressing Market Challenges
The urgency for reform has been building throughout 2025. The London Stock Exchange endured its biggest exodus since the financial crisis last year, with 88 companies either leaving their primary listing or delisting completely.
Notable departures included Paddy Power owner Flutter and technology firm Darktrace. This trend continued into 2025, with money transfer specialist Wise moving its primary listing to the United States in search of deeper capital pools.
Earlier this year, investment platform IG intensified pressure with its "Save our Stock market" campaign, dubbed the SOS initiative, which served as an "urgent rallying cry to policymakers" to reverse the market's decline.
However, recent months have shown tentative signs of recovery. The successful floats of tinned tuna giant Princes and specialist lender Shawbrook provided a much-needed boost, with the latter achieving a valuation approaching £2 billion and rising six per cent on its first day of trading.
As the chief executive of Cavendish investment bank cautioned in October, the government needed to be "very careful" in the Budget to avoid harming this fragile resurgence, noting that the economy remains the main driver of IPO activity.
This stamp duty holiday represents the government's clearest signal yet that it intends to create more favourable conditions for companies considering a London listing.
