EY comments on the government’s plan to abolish Stamp Duty Tax on Shares for companies listed on AIM
20 March 2013
John Cooney, EY tax partner, comments on the government’s plan to abolish Stamp Duty Tax on Shares for companies listed on AIM:
“AIM has lost its sparkle of late and any measure which aims to encourage investment in growth companies and growth shares has to be a good thing for the UK economy. These companies are the potentially stars of the future and will help drive the UK economy out of the doldrums so support for them has to be welcomed.
“Shares in AIM companies are treated as unquoted and qualify for business property relief reducing inheritance to zero on the value of AIM stocks owned for two years, so having the added benefit of no stamp duty will only encourage further interest and hopefully investment in these entrepreneurial growth companies. The half per cent may also help fund managers buy into more established AIM companies.
“However, what must be remembered is that the challenges that have been faced by AIM and reluctance to invest over the last couple of years are as much to do with the risk profile of the businesses on the exchange as it is to do with faltering economy .”