UK bids to boost London IPOs with stamp duty exemption, FT reports

The UK government planned to temporarily exempt newly-listed companies from the stamp duty on the London Stock Exchange to attract more firms to go public in the city, Financial Times reported.

The initiative, which is expected to be part of the upcoming November budget, will exempt investors from the 0.5 percent levy applied to share trading for new listings, the report said.

The proposed tax exemption will only last for two to three years following the firm's market debut, FT said.

Due to the moribund state of the UK's public markets, this move aimed to enhance its global competitiveness and attract retail investors, according to the report.

In the first three quarters this year, the London Stock Exchange only raised US$210 million (HK$1.63 billion) in the IPO market, even lower than some exchanges in emerging markets like Angola and Zagreb, the report said.