Policy paper

Stamp Duty Reserve Tax — UK Listing Relief

Published 26 November 2025

Who is likely to be affected

Companies who intend to list their securities on a stock exchange which is a UK regulated market. Taxpayers and businesses involved in the buying and selling of those securities.

General description of the measure

The measure will provide an exemption from the 0.5% Stamp Duty Reserve Tax (SDRT) charge on agreements to transfer securities of a company whose shares are newly listed on a UK regulated market.

The exemption will apply for a 3-year period from the listing of the company’s shares. Once in the post-listing period the exemption will apply to all of the company’s securities (not just shares).

The exemption will also apply to depositary interests over a company’s securities where the depositary interests (over the company’s shares) are newly listed.

The exemption will not apply to the 1.5% SDRT charge (in respect of transfers to depositary receipt systems or unelected clearance services), or where the transfer forms part of a merger or takeover where there is a change of control.

Policy objective

UK financial markets play a crucial role in helping to provide companies with access to capital to use for further investment and growth. A key requirement to access capital from UK public markets is that a company lists its shares on a stock exchange (offers them to the public) as part of an Initial Public Offering (IPO) or introduction (for example, direct listing).

The performance of these shares in the first few years following listing are important for a company’s long term growth prospects. Providing an exemption from SDRT for the first 3 years following a new listing will therefore support those companies by helping to secure higher initial valuations and liquidity by encouraging the trading of their shares in the secondary market.

The measure will also help provide an incentive for UK and foreign companies to list in the UK, including boosting UK attractiveness as a dual listing destination for global companies.

Background to the measure

The measure was announced at Budget 2025.

Detailed proposal

Operative date

The measure will have effect for agreements to transfer made on or after 27 November 2025. It will apply where the shares of the relevant company are newly listed on or after that date.

Current law

Part IV of Finance Act 1986 sections 86 to 99 sets out the main scope and charging provisions for Stamp Duty Reserve Tax.

Proposed revisions

Legislation will be introduced in Finance Bill 2025-26 to insert new section 89C into Finance Act 1986.

Summary of impacts

Exchequer impact (£ miilion)

2025 to 2026	2026 to 2027	2027 to 2028	2028 to 2029	2029 to 2030	2030 to 2031
-25	-35	-45	-50	-50	-50

These figures are set out in Table 4.1 of Budget 2025 and have been certified by the Office for Budget Responsibility. More details can be found in the policy costings document published alongside Budget 2025.

Macroeconomic impact

This measure is not expected to have any significant macroeconomic impacts.

Impact on individuals, households and families

This measure is expected to incentivise individuals to invest in newly listed companies. It is expected to have no impact on individuals’ experience of dealing with HMRC as it does not change any processes or tax administration obligations. The measure is not expected to impact on family formation, stability or breakdown.

Equalities impacts

HMRC does not hold data on individuals involved in the buying and selling of securities, so estimates have been produced using the stocks and shares holder population therefore these estimates are uncertain. Where a protected group is overrepresented in the stocks and shares holder population, it will be disproportionately impacted, however impact on these groups will be minimal.

Stocks and shares holders are estimated to be older in age, with those aged 55 to 75+ (61%) overrepresented compared to their prevalence in the overall UK adult population (41%). Males (58%) are also estimated to be overrepresented in this population compared to the UK adult population (50%).

People from a White English, Welsh, Scottish, Northern Irish, or British ethnic background are estimated to be overrepresented (88%) in the stocks and shares holder population compared to their representation in the UK adult population (82%). Those from Asian, Asian-British and Black, African, Caribbean or Black British ethnic backgrounds are estimated to be underrepresented. Those from the Christian faith are also estimated to be overrepresented in this population (57%) compared to the UK adult population (52%). Finally, those who identify as heterosexual are estimated to be overrepresented in the stocks and shares holder population (77%) compared to the UK adult population (66%).

Where data were available no other protected characteristic group was estimated to be overrepresented in the population affected by this measure.

Administrative impact on business including civil society organisations

The measure will have a negligible impact on businesses whose main activity is the buying and selling of securities in relation to administrative burden.

One off costs will include familiarisation with the legislation and implementation of the changes into businesses processes and IT systems including CREST which deal with the transfer and settlement of securities.

Continuing costs to businesses in the normal day-to-day operation of the measure when applying the exemption on related securities trading and settlement within the 0.5% SDRT regime will be negligible.

There will be some additional admin costs for stockbrokers, clearance services and depositary receipt system operators in relation to accounting for 1.5% SDRT charges manually to HMRC outside of the CREST system, but it is expected those additional costs will also be negligible.

This measure is expected to have no impact on businesses’ experience of dealing with HMRC as it does not change any processes or tax administration obligations.

This measure is not expected to impact on civil society organisations.

Operational impact (£ million) (HMRC or other)

There are no operational impacts. HMRC will not incur any costs in implementing these changes.

Other impacts

Other impacts have been considered and none have been identified.

Monitoring and evaluation

Consideration will be given to evaluating aspects relating to the main objectives of the policy, which may include monitoring the number of new listings and securities trading activity after 5 years of monitoring data have been analysed and collected.

Further advice

If you have any questions about this change, contact the HMRC Stamp Taxes team at stamptaxes.budgetfinancebill@hmrc.gov.uk.