UK considering tax break for investors in new London listings

The UK Treasury plans to give a stamp duty holiday to investors in new stock market listings in London in an attempt to encourage more initial public offerings, the Financial Times reported on Wednesday.

Investors in newly listed companies on the London Stock Exchange would be exempt from the 0.5% tax on buying those shares, the newspaper said, citing "two people with knowledge of discussions for the UK’s November budget".

There already is an exemption for shares bought at the point of issue in an IPO, the FT noted, but the new exemption would apply for a two to three years after the company's flotation.

Chancellor Rachel Reeves will present the UK government budget in late November.