Fintech lobby urges UK to eliminate stamp duty on shares to revive IPO market

Innovate Finance, the association for the UK’s fastest-growing fintech companies, has released a report urging the Treasury to scrap the 0.5% stamp duty on share transactions. The body, whose members include Revolut, Monzo and Zilch, contends that the levy inflates the cost of capital and deters domestic investors, weakening London’s appeal as an IPO venue. Chancellor Rachel Reeves previously introduced a three-year stamp-duty holiday for new listings in her 2025 Budget, a step the group described as welcome but insufficient, as it has not generated a wave of new listings.

Innovate Finance argues that full abolition would eliminate a competitive disadvantage, boost local equity ownership, and reduce reliance on overseas capital, which has fueled recent foreign takeovers of UK firms. In September, three London-based companies—Bodycote, Gamma Communications and Capricorn—agreed to be taken private in deals totaling roughly £3 billion. The tax generated about £4.3 billion in revenue for HMRC in the 2024-2025 financial year, highlighting its fiscal significance despite the industry’s criticism.