Measure
A stamp duty reserve tax (SDRT) relief is being introduced for UK listings. The relief will run for 3 years following the listing. It is subject to exclusions in certain cases where the listing comes about because of the takeover of, or merger with, a company which was already listed, or where there is the insertion of a new holding company of an existing listed company.
The relief will mean the initial and subsequent buyers of shares in a company listed on a UK regulated market will not incur the 0.5% SDRT charge which would otherwise generally apply. Buyers taking delivery of physical shares (rather than shares held electronically in CREST) should be aware that stamp duty (rather than SDRT) applies to such transfers by instrument and there is no equivalent exemption for stamp duty. The relief will not apply to the higher 1.5% rate SDRT charge (in respect of transfers to depositary receipt systems or clearance services).
The measure applies in respect of companies first listed on or after 27 November 2025.
The measure will be a boost for new listings taking place in the UK. It is also sensible that it has taken effect almost immediately, so should not result in any planned listings being delayed. It is expected by the government to cost the Exchequer £50m per year, but this may be money well spent if it supports new entrants to the capital markets in the manner anticipated. If its impact is very significant, it may add weight to the argument for further SDRT exemptions or even the abolition of SDRT on listed securities.