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Aim stamp duty reprieve ‘much-needed’

The Government’s move to scrap stamp duty on shares listed in growth markets such as Aim has been welcomed by the investment community.

In this week’s Budget chancellor George Osborne revealed that from April 2014 buyers of shares in smaller-company markets such as Aim and ISDX will not pay the 0.5 per cent tax.

This means investors in Aim shares, which the Government also plans to allow into stocks and shares Isas, can now avoid capital gains tax, income tax and inheritance tax as well as stamp duty.

AJ Bell chief executive Andy Bell says: “The combination of abolishing stamp duty reserve tax with allowing Aim shares to be held in Isas is going to open up a significant investment market to a number of growing companies.

“We expect a surge in popularity once the Aim restrictions are removed and the cost of investing goes down.”

Groups such as the London Stock Exchange have long campaigned for improved tax treatment of Aim, as the market suffered volatility and reduced liquidity after the number of investors interested in the space declined over the years.

Albion Ventures managing partner Patrick Reeve says: “Aim is the magnet that attracts smaller companies towards venture capital funding. In recent years Aim has lacked the necessary power to fulfil this role effectively but the chancellor’s announcement to scrap stamp duty on growth markets such as Aim provides a much-needed fillip.”

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