The UK government faces increasing pressure to abolish or reform stamp duty in a bid to attract more IPOs and stem the exodus of companies to foreign markets, with industry leaders calling for urgent action to secure London’s position as a global financial hub.
Chancellor Rachel Reeves faces mounting pressure to implement decisive measures aimed at revitalising the UK stock market, following a period marked by company departures and subdued new listings that have called into question London’s standing as a premier global financial hub. The prospect of a stamp duty holiday for investors in newly listed firms is currently under consideration, signalling a potential policy shift designed to attract more initial public offerings (IPOs) to the London Stock Exchange (LSE). This move comes amid growing concerns that the UK is losing ground to financial centres such as New York, Mexico, and Singapore in initial fundraising activity.
There has been a notable exodus of companies from the UK to Wall Street, with high-profile firms like AstraZeneca choosing to list directly on the New York Stock Exchange. Such decisions have intensified fears that London might permanently lose its influence in the global equity markets. However, recent listings, including the US data centre group Fermi’s dual listing on both the LSE and Nasdaq, and the anticipated IPO of challenger bank Shawbrook, suggest there remains appetite and opportunity for growth within the domestic market. Beauty Tech’s planned flotation, expected to value the firm at around £300 million, further bolsters a tentative sense of optimism about London’s market viability.
Industry experts are urging the Chancellor to act boldly beyond tentative tax breaks. While the Treasury is reportedly looking at exempting investors from stamp duty on shares purchased in new listings for a limited period of two to three years, many voices from the City argue this would be an insufficient measure. The 0.5% stamp duty on UK share purchases has long been criticised for dampening investor enthusiasm compared to foreign markets, particularly US stocks, where no equivalent tax applies. Dan Coatsworth, head of markets at trading platform AJ Bell, called the proposed holiday a positive step but noted that fully abolishing stamp duty on all UK shares would be even more impactful, though he acknowledged the Treasury’s likely hesitation due to revenue concerns.
Calls for abolition are not limited to individual investors or trading platforms; influential bodies such as the Investment Association—which represents firms managing £9.1 trillion in assets—have urged a complete removal of stamp duty to enhance the UK’s competitiveness. Leading fintech companies including Revolut, Monzo, Atom Bank, and Zilch have also lobbied for incentives like stamp duty holidays or capital gains tax reductions to encourage fast-growing businesses to list domestically rather than seeking foreign exchanges. Their argument highlights the strategic necessity of maintaining London’s status as a fintech and financial services innovation hub.
City leaders and market analysts underline that such fiscal incentives could widen access to equity markets for retail investors and broaden the pool of potential investors for British firms. Chris Beauchamp from IG highlighted that the survival of dual listings like Fermi’s sends a positive signal to policymakers that London’s market “is not yet doomed to irrelevance” if it receives adequate support. Likewise, Brendan Callan, CEO of trading platform Tradu, voiced that abolishing stamp duty on all share trading would be a “strong step in the right direction” to rejuvenate the UK equities market.
Despite these wide-ranging calls for reform, the Treasury emphasises a balanced approach, underscoring its commitment to making the UK attractive for businesses to start, scale, list, and remain. However, with significant public finances pressures, the government’s willingness to forgo stamp duty revenue remains uncertain. The upcoming budget, expected in late November, will be a critical moment to observe whether these ambitions for the UK stock market translate into substantive policy changes.
The debate over stamp duty reform is emblematic of broader concerns about London’s future as a global financial centre. Abolishing or substantially reforming the stamp duty regime could be a pivotal strategy to boost domestic capital markets, incentivise IPOs, and counter the international drift of UK companies and investors. If Chancellor Reeves seizes this opportunity, it could mark a crucial turning point in reinvigorating the City and positioning it more competitively on the world stage.
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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:
8
Notes:
The narrative discusses Chancellor Rachel Reeves considering a stamp duty holiday for new share listings on the London Stock Exchange, a topic that has been reported in recent months. For instance, reports from October 2, 2025, indicate that the UK Treasury is considering such a measure to boost investment in UK markets. ([investment-international.com](https://investment-international.com/News/uk-treasury-mulls-stamp-duty-holiday-for-new-listings-reports/?utm_source=openai)) Additionally, discussions from July 9, 2025, highlight calls from city leaders to abolish stamp duty on shares to revitalise the UK stock market. ([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)) While the specific details in the narrative may be original, the central theme has been covered in recent months. The presence of multiple references to similar discussions suggests a moderate freshness score. The earliest known publication date of substantially similar content is July 9, 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)) The narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. The presence of multiple references to similar discussions suggests a moderate freshness score. The earliest known publication date of substantially similar content is July 9, 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))
Quotes check
Score:
9
Notes:
The narrative includes direct quotes from industry experts and organisations, such as Dan Coatsworth from AJ Bell and the Investment Association. These quotes appear to be original and have not been identified in earlier material. The absence of identical quotes in earlier sources suggests that the content is potentially original or exclusive.
Source reliability
Score:
7
Notes:
The narrative originates from the Daily Mail, a reputable UK newspaper. However, the Daily Mail has faced criticism in the past for sensationalism and inaccuracies. Given the presence of multiple references to similar discussions from other reputable sources, the reliability of the Daily Mail in this instance is moderate.
Plausability check
Score:
8
Notes:
The claims regarding Chancellor Rachel Reeves considering a stamp duty holiday for new share listings align with recent discussions and reports from reputable sources. The narrative provides specific details, such as the potential duration of the tax holiday and the expected announcement date, which are consistent with other reports. The language and tone are consistent with typical corporate and official language, and the structure focuses on the central claim without excessive or off-topic detail.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents a plausible claim regarding Chancellor Rachel Reeves considering a stamp duty holiday for new share listings on the London Stock Exchange. While the central theme has been covered in recent months, the inclusion of original quotes and specific details suggests potential originality. The source’s reliability is moderate due to the Daily Mail’s past criticisms, and the plausibility of the claims is supported by consistency with other reputable reports. Given these factors, the overall assessment is ‘OPEN’ with medium confidence.
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