The Wealth Management Association has welcomed a governmental review on removing stamp duty from share transactions as part of its continued work on tax simplification.
Announced as part of yesterday’s (November 23) Autumn Statement, the government said it had directed the Office for Tax Simplification (OTS) to study whether stamp duty could be removed entirely on all share purchases and sales.
The OTS had suggested the move as part of a wider review of government tax policy. The government has already scrapped the duty for part of the market, having removed stamp duty on share transactions in the Alternative Investment Market (Aim) in April 2014.
The government said: “The government welcomes and has responded to the reviews the OTS has published this autumn.
“The government has now asked the OTS to carry out reviews on aspects of the VAT system and on stamp duty on share transactions.”
The WMA said it had already submitted several options to the OTS.
Liz Field, chief executive, said: “The WMA believe the government could go further [than the Aim move] by extending this exemption to all UK registered shares.
“We greet today’s stamp duty review with much enthusiasm. It is vital to protect the interests of investors and the investment industry in the UK and removal of this tax would grow the UK’s competitive advantage and increase trading and liquidity.”