STSM041290 - Exemptions and reliefs: exemptions: growth market shares - recognised growth markets - how to qualify as a recognised growth market
A market must be a recognised stock exchange or (with effect from 1 January 2024) a Financial Conduct Authority (FCA) regulated multilateral trading facility (MTF) and meet one of two conditions:
- A majority of companies trading on that market are companies with market capitalisations of less than £450 million (with effect from 1 January 2024, the previous limit was £170million) in the qualifying period (see STSM041300), or
- HMRC is satisfied that the market’s rules require companies seeking admission to demonstrate at least 20% compounded annual growth in gross revenue or employment over the last three periods of account preceding admission (see STSM041310).
A list of recognised stock exchanges is published on gov.uk. Tables 1 and 2 show which exchanges are recognised stock exchanges, and which markets on those stock exchanges have “listed” and “not listed” status. In practical terms, a market wishing to apply to be a recognised growth market will need to be part of a recognised stock exchange shown on one of the tables, and have “not listed” status, or be an FCA regulated MTF.
A list of recognised growth markets can be viewed at STSM041330.