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Budget 2013: Stamp duty on AIM stocks to be abolished
by David Campbell on Mar 20, 2013 at 13:10
The government is to abolish stamp duty on purchases of Alternative Investment Market (AIM) stocks from next year in a move to ease the cost of funding to smaller businesses.
‘While other countries are launching transaction taxes, we are abolishing one,’ said Osborne, shortly after hailing Britain’s ‘world class’ asset management industry, and pledging to support it.
In a joint statement, Citywire AAA-rated Giles Hargreave and co-manager Oliver Bedford of Hargreave Hale said: 'Abolishing stamp duty on AIM shares will speed up the movement of capital into smaller company equities and help more AIM listed stocks gain visibility and make a great growth market story more attractive to more investors.
'With 1,100 companies, AIM is home to three times as many companies as the FTSE 350. Many of these are developing the technologies and products of the future and looking for growth capital through AIM. Today’s announcement by the chancellor acknowledges their contribution to the UK and will, we hope, encourage more investors to consider an investment into this vibrant market.'
However, Richard Croker, head of tax at CMS Cameron McKenna, said: 'The surprise move to abolish stamp duty on AIM deals sounds better than it is. In practice only a small fraction of the traffic in listed shares is on AIM and the main market is unaffected.'
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