Boost for London market as three-year stamp duty holiday on IPOs confirmed

But a shock rise in dividend tax ‘undermines the drive to increase investing in Britain’, experts warned.

The Chancellor has confirmed a three-year stamp duty holiday on shares bought in new UK flotations in a move showing Britain is “backing its markets”, according to the London Stock Exchange.

In a raft of measures to boost investment in UK shares, Rachel Reeves said that from November 27, investors will be exempted from paying the tax – currently at a rate of 0.5% – on shares in companies that are newly-listed in the UK for the first three years following its initial public offering (IPO).

But the Chancellor also revealed an unexpected increase in dividend tax, rising by 2% for basic and higher rate taxpayers next year, which experts warned “undermines the drive to increase investing