Budget 2025: AIC welcomes “baby step” towards abolishing stamp duty but chancellor should have gone further
Initial public offerings (IPO) to benefit.
The Association of Investment Companies (AIC) has welcomed the stamp duty holiday on initial public offerings (IPOs) announced in today’s Budget by Chancellor Rachel Reeves.
The Chancellor should have been bolder in this first step and abolished it permanently on shares of investment trusts as well.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC)
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “This is a welcome baby step towards reviving UK listings, but it must be part of a broader plan to phase this tax out altogether. The Chancellor should have been bolder in this first step and abolished it permanently on shares of investment trusts as well.
“Investment trusts already pay stamp duty when they invest in UK shares, so charging it to their investors is a form of double taxation that should be stopped. In addition, stamp duty is charged on investment trust shares when there is no levy on the units of open-ended funds. Taxation should not create competitive advantages or disadvantages in this way. Abolishing stamp duty on investment trusts would level the playing field and remove the bias in favour of overseas equities which discourages investment in the London market.
“We have long called for the abolition of stamp duty. Another step towards full abolition would be to get rid of stamp duty on shares purchased within ISAs and pensions. This would incentivise pension funds to hold more UK shares and encourage individuals to start investing in the UK in their stocks and shares ISAs.”
- ENDS -
Follow us on X @AICPRESS
Notes to editors
- The Association of Investment Companies (AIC) represents a broad range of investment trusts and VCTs, collectively known as investment companies. The AIC’s vision is for closed-ended investment companies to be understood and considered by every investor. The AIC has 286 members and the industry has total assets of approximately £272 billion.
- For more information about the AIC and investment trusts, visit the AIC’s website.
- Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
- To stop receiving AIC press releases, please contact the communications team.
