Measure
The conditions for being a recognised growth market will be changed to allow a growth market with an average capitalisation of less than £450m (currently £170m) to make it easier to qualify for recognition.
In addition to recognised stock exchanges, qualifying multilateral trading facilities will also now be able to apply for recognition.
The measure will affect investors in companies on the relevant market, as it may result in exemption from the 0.5% stamp duty or SDRT charge otherwise usually applicable on the acquisition of shares in UK incorporated companies.
The measure will take effect on 1 January 2024.
At this stage, it is not yet clear that this will actually change the number of markets which are recognised growth markets for the purposes of the exemption. Far and away the largest market for UK shares to which this exemption applies is believed to be the Alternative Investment Market (AIM)where the average market capitalisation in summer 2022 was reported to be £120m.