Stamp taxes on eligible AIM shares abolished
From 28 April 2014, the 0.5% stamp duty or stamp duty reserve tax charge currently applied to purchases of eligible shares traded on recognised growth markets will be abolished.
What does this mean?
You will no longer be charged 0.5% stamp duty of the transaction value each time you buy a share or marketable security on a recognised growth market*.
A recognised growth market means a ‘recognised stock exchange’ where the majority of the companies whose shares are traded on the exchange have a market capital less than £170m. Recognised growth markets include the Alternative Investment Market (AIM) and the ICAP Securities & Derivatives Exchange (ISDX). Other markets may also be included on the list of recognised growth markets, which will be available on HMRC’s website.
You can purchase AIM and ISDXs shares through BARXdirect Equities. When considering AIM-listed stocks you should be aware that such companies tend to be smaller and as such the related risks and price volatility can be greater. Their value can go down as well as up and you may receive back less than you invest.
What are the benefits?
- From 28 April 2014, you will not have to pay stamp taxes when you purchase shares on the AIM or ISDX
- This may allow you to expand your portfolio to include equity growth markets.
- View HMRC recognised growth market list
- View LSE information on stamp duty exemption