Tax

Rachel Reeves, the Chancellor of the Exchequer, delivered the 2025 Autumn Budget, the Labour government’s second following their election to office in 2024. Among other changes, Ms Reeves announced a stamp duty reserve tax (“SDRT“) break for newly listed companies.

Currently, when investors buy shares listed on a UK regulated market electronically, they pay SDRT at 0.5% (other than AIM or the High Growth Segment where there is an existing exemption). This SDRT charge is generally viewed as having a negative impact on the attractiveness of London as a listing venue and a major “con” in the related feasibility analysis for companies that have a choice of potential trading locations. The UK’s 0.5% rate is one of the highest globally.

The implementation of UK Listing Relief from 27 November 2025 will allow investors to trade shares free of SDRT for the first three years following a company’s IPO on a UK regulated market.

Building on last year’s Listing Rule reforms, this new relief is expected to be welcomed as a further boost to the relative attractiveness of listing in London. Q4 2025 has already seen a notable increase in the number of companies choosing London as their listing venue and there is widespread optimism that this trend will continue into 2026.