The British government will abolish stamp duty on exchange traded funds (ETFs) starting April 2014 in an effort to attract financial services activities from European centres.
Earlier in March budget, the UK Chancellor George Osborne promised to abolish stamp duty on AIM shares and the Schedule 19 stamp duty reserve tax (SDRT) for mutual funds.
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"Today, we also abolish stamp duty for shares purchased in exchange traded funds to encourage those funds to locate in the UK," Osborne added.
"From April 2014 the government will remove the stamp duty and Stamp Duty Reserve Tax (SDRT) charge on purchases of shares in ETFs that would currently apply if an ETF were domiciled in the UK," said Osborne in his Autumn Statement 2013.
Currently London is Europe’s biggest market for ETF trading. Earlier this year, the government also introduced investment tax-breaks.
In addition, the government will also introduce a new social investment tax relief to encourage people to invest in social organisations.
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By GlobalData
