The UK is introducing a stamp duty holiday for newly listed companies on the London bourse, effective from Thursday, amid the government’s wider push to drive growth and bolster competitiveness in the country’s capital markets.
The new UK Listing Relief, which is part of a package of economic measures unveiled by Chancellor Rachel Reeves in Wednesday’s Autumn Budget statement, will remove the 0.5% stamp duty reserve tax on transfers of securities for three years after companies first list their shares on a regulated market.
The stamp duty holiday is aimed at attracting more businesses to the London bourse, which has seen a spate of companies shift their primary stock market listing venue elsewhere, scrap their IPO plans, or exit the bourse altogether over the last few years.
“And to continue this work I am launching a Call for Evidence on how our tax system can better back entrepreneurs and a targeted review with founders and investors at the heart to make the UK an even more attractive place to grow your business,” Reeves said in her speech.
The London Stock Exchange has lost 213 companies since 2016, according to a July 2025 report from the Confederation of British Industry, which also noted that the exits outnumber new listings.
Recent big names that announced plans to relocate their main listing to the US from the UK include financial technology company Wise plc (WISE.L) and equipment rental company Ashtead Group (AHT.L), whereas pharmaceutical giant AstraZeneca (AZN.L) intends to directly list its shares on the New York Stock Exchange instead of existing American depositary receipts. All three will keep their UK listings.
Meanwhile, those that delisted from the London bourse altogether included Netherlands-based online food delivery company Just Eat Takeaway.com (TKWY.AS) and Australian energy group Woodside Energy.
With the stamp duty seen as one of the key drags on investor sentiment for the UK, its removal raised hopes of a stock market revival.
London Stock Exchange Group (LSEG.L) Chief Executive Officer Julia Hoggett welcomed the chancellor’s decision, noting that it sends “the right signal” and creates “the right conditions” to spur continued economic activity in the country.
“[The move] is a clear acknowledgment of the vital role equity markets play in driving investment, innovation, and job creation. It is also an important first step in removing the distorting effects of this duty which has historically disincentivised investment in UK companies, especially for retail investors,” Hoggett said in response to the measure.
Meanwhile, in an emailed statement to MT Newswires, Inigo Esteve, a partner in the capital markets group of global law firm White & Case, echoed the LSEG chief’s sentiments, saying the tax relief sends a “powerful” message that London is actively competing with other financial hubs for IPO activity.
“Stamp duty on share transfers was one of the remaining areas in which London differs from competing listing venues … The reform comes at an important time for The City and supports the growing momentum in the London market, to add to the regulatory changes already enacted by the [Financial Conduct Authority] and LSE that have levelled the playing field with other leading listing venues,” Esteve added. “Companies and investors are once again eyeing the longer-term attractiveness of the UK as a listing venue and any further reforms will help cement London’s position as Europe’s largest and pre-eminent listing venue.”
Invesco’s global head of research, Benjamin Jones, meanwhile, highlighted that the FTSE 100 index has outperformed in 2025, benefiting from its international exposure and sector mix, while the FTSE 250 and other domestic indices are lagging behind as investors remain cautious over the UK’s growth prospects and fiscal risks.
“Our UK equity teams see plenty of opportunities in the UK today and hold a similar view that the private sector backdrop is far less bad than many suggest. UK Banks remain a favoured area for example,” Jones said. “The budget is not pleasant but it is not Armageddon and it doesn’t change much in the way we should think about investing but rather now clears some of the uncertainty we think has been holding back household spending and investing, and companies investing and hiring.”