UK faces race to retain stock market competitiveness as AstraZeneca opts for US listing

Rachel Reeves faces mounting pressure to abolish stamp duty on share trading amid concerns that UK firms, exemplified by AstraZeneca, are increasingly favouring the US capital markets, risking London’s status as a global financial centre.

Rachel Reeves, the Chancellor, is facing intensifying pressure to abolish stamp duty on share trading to revitalise the UK stock market amid growing fears that more companies will relocate from London to other financial hubs like New York. The calls come as concerns mount over the competitiveness of London’s capital markets and the risk of losing key listings to international rivals.

Currently, a 0.5% stamp duty levy applies on share transactions, which some market participants argue discourages trading and listing activity on the London Stock Exchange. The Chancellor is reportedly contemplating a stamp duty exemption for investors purchasing newly listed shares as a measure to encourage firms to float in London. However, there is significant agitation from industry voices pushing for the complete removal of the 0.5% stamp duty on share trading. Charles Hall from Peel Hunt described the tax as a deterrent and a drag on market vibrancy, though he noted that economic pressures might limit the government’s willingness to scrap the tax entirely.

This taxation on share purchases forms part of the broader Stamp Duty Reserve Tax (SDRT) framework in the UK, which imposes a 0.5% charge on electronic share transactions while paper-based dealings over £1,000 attract a similar levy. The government’s tax regime includes some exemptions, for example, when shares are issued for free or through new share subscriptions. Separate from the common 0.5% stamp duty are additional charges such as a 1.5% levy on specific transactions, including transfers involving depositary receipt issuers or clearance services. There have been ongoing government consultations to modernise this tax framework, with proposals to streamline various stamp duties into a single self-assessed tax and improve reporting processes via digital portals.

The urgency of these considerations has heightened following AstraZeneca’s announcement to directly list shares on the New York Stock Exchange. This move, aiming to replace its current American Depositary Receipts (ADRs) and leverage deeper U.S. capital markets, has sent a clear signal about London’s perceived challenges as a financial centre. The pharmaceutical giant clarified that it will retain its UK headquarters and remain listed in London and Stockholm. Yet, the shift underscores a strategic pivot towards the US investor base, which constitutes a significant portion of AstraZeneca’s shareholders. The new US listing is scheduled for February 2026, with a shareholder vote planned for November.

Experts and market analysts warn that AstraZeneca’s decision could act as a catalyst, encouraging other major UK firms to enhance or even move their listings to US exchanges. Such a trend risks eroding London’s status as a premier global financial centre. Reuters commentary points out that while AstraZeneca has no current plans to delist from London fully, a successful and beneficial US listing might change that calculus eventually. Moreover, AstraZeneca’s recent moves—such as the suspension of a £200 million research facility in Cambridge and the scrapping of a £450 million vaccine manufacturing plant—reflect frustrations with the UK’s drug pricing and regulatory environment, further complicating the picture for UK policymakers.

In summary, the Chancellor faces a complicated challenge in balancing fiscal needs with the imperative to maintain London’s appeal as a capital market hub. The mounting calls to scrap stamp duty on shares altogether underscore fears that the current tax regime may be driving market activity and valuable listings across the Atlantic. The government’s approach to reforming stamp duty and supporting listings, particularly through measures for new share issues, will be crucial in determining the future competitiveness of the UK’s financial markets.

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Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
7

Notes:
The narrative has appeared in multiple outlets, including MoneyWeek on 9 July 2025 ([moneyweek.com](https://moneyweek.com/investments/stocks-and-shares/city-bosses-call-for-stamp-duty-on-shares-to-be-scrapped-to-save-uk-stock-market?utm_source=openai)) and Reuters on 4 October 2024 ([reuters.com](https://www.reuters.com/business/finance/uk-finance-industry-calls-government-axe-additional-bank-taxes-2024-10-04/?utm_source=openai)). The earliest known publication date is 4 October 2024. The report is based on a press release from UK Finance, which typically warrants a high freshness score. However, the presence of similar content across various platforms suggests potential recycling. The article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. Additionally, the narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged.

Quotes check

Score:
6

Notes:
The report includes direct quotes from Charles Hall of Peel Hunt and references to UK Finance’s recommendations. Similar quotes have appeared in earlier material, indicating potential reuse. The wording of the quotes varies slightly across sources, suggesting some adaptation. No online matches were found for other direct quotes, raising the score but flagging them as potentially original or exclusive content.

Source reliability

Score:
5

Notes:
The narrative originates from the Daily Mail, a reputable organisation. However, the presence of similar content across various platforms, including MoneyWeek and Reuters, suggests potential recycling. The report is based on a press release from UK Finance, which typically warrants a high freshness score. However, the presence of similar content across various platforms suggests potential recycling.

Plausability check

Score:
7

Notes:
The narrative makes claims about Chancellor Rachel Reeves considering the abolition of stamp duty on share trading to revitalise the UK stock market. These claims are plausible and align with previous reports, such as the UK’s finance industry’s call to abolish the 0.5% stamp duty on UK share purchases to boost investment in the country’s stock markets ([reuters.com](https://www.reuters.com/business/finance/uk-finance-industry-calls-government-axe-additional-bank-taxes-2024-10-04/?utm_source=openai)). The report lacks specific factual anchors, such as names, institutions, and dates, which reduces the score and flags it as potentially synthetic. The tone and language are consistent with typical corporate or official language, and the structure does not include excessive or off-topic detail unrelated to the claim.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary:
The narrative presents plausible claims about Chancellor Rachel Reeves considering the abolition of stamp duty on share trading to revitalise the UK stock market. However, the presence of similar content across various platforms, including MoneyWeek and Reuters, suggests potential recycling. The report is based on a press release from UK Finance, which typically warrants a high freshness score. The quotes vary slightly across sources, indicating some adaptation. The lack of specific factual anchors reduces the score and flags it as potentially synthetic. Given these factors, the overall assessment is OPEN with a MEDIUM confidence level.