Further to the UK Chancellor’s pre-budget speech last week, Gordon Brown has announced that the UK Government will exempt non-UK-resident exchange-traded funds from stamp duty from February 2007.
The London Stock Exchange has welcomed the plans to remove the stamp duty, saying the move will put London on a par with other European financial centres.
The UK Investment Management Association has also welcomed the change, saying it is a good first step to reducing the distortions
Stamp duty is a tax currently levied by the UK Treasury at a rate of 0.5% on purchases in the shares of UK companies; a rate that had been unchanged since 1986. Until its announced abolition, the City of London was the only one of the world’s three major financial centres with such a tax.
Further information will be circulated as and when available.
Please note that the above communication merely provides a high-level overview of the legislative developments.