Innovate Finance, a group representing some of the UK's fastest-growing fintech companies, has called on the government to abolish stamp duty on shares. The organisation, whose members include Revolut, Monzo, and Zilch, believes scrapping the 0.5 per cent levy on UK stocks would boost British equity ownership and enhance London's appeal as a listing venue for initial public offerings (IPOs).
A three-year stamp duty holiday for new listings was introduced by former Chancellor Rachel Reeves in her 2025 Budget. While Innovate Finance described this measure as "welcome," it has not yet led to a significant increase in new listings.
In a new report, Innovate Finance stated, "Now is the time to abolish stamp duty on UK listed shares in entirety." The group argues that removing the tax would eliminate a competitive disadvantage, encourage domestic investment, strengthen London's attractiveness for IPOs, and help reverse the decline in British ownership of UK companies.
HMRC collected approximately £4.3bn from the shares levy in the 2024-2025 financial year, with total tax receipts rising by 35 per cent. Innovate Finance also claims the tax exposes UK firms to a reliance on overseas capital, takeovers, and relocation.