Growth market exemption from stamp duty and SDRT


Published by a ½Û×ÓÊÓƵ Tax expert
Practice notes

Growth market exemption from stamp duty and SDRT


Published by a ½Û×ÓÊÓƵ Tax expert

Practice notes
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No stamp duty or stamp duty reserve tax (SDRT), whether at the 0.5% rate or the higher 1.5% rate, is chargeable on a transfer of shares or securities that are:

  1. •

    admitted to trading on a recognised growth market, and

  2. •

    not listed on that or any other market, ie not listed on a recognised stock exchange

Shares admitted to trading on AIM qualify for this exemption provided that they are not listed on any recognised stock exchange. If, for instance, AIM shares are, in addition to being admitted to trading on AIM, also listed on an exchange (whether inside or outside the UK), the shares would be listed and would therefore not be able to benefit from this exemption.

The stated objective is for this growth market exemption to 'boost investor participation in equity growth markets and improve the conditions for growing companies to raise equity finance'.

A list of CREST-settled securities exempted by this measure is available on the Euroclear UK & Ireland website. Euroclear is the operator of the CREST

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Stamp duty definition
What does Stamp duty mean?

A transfer tax payable on documents and instruments, rather than in respect of a transaction. It is most commonly encountered on the transfer of UK certificated shares, where the stock transfer form is the instrument that is stamped.

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