Stamp duty on shares bought in Exchange Traded Funds (ETFs) is to be abolished in a bid to encourage more firms to domicile products in the UK.
Providers currently pay 0.5% tax on shares purchased. In March's Budget, Chancellor George Osborne (pictured) announced stamp duty on AIM shares would also be abolished. Law firm Pinsent Masons partner in the financial regulation team Monica Gogna said: "It is heartening to hear the Chancellor's move to support the financial services sector demonstrated by the move to abolish stamp duty for Exchange Traded Funds. "This is surely another sign that the ETF industry in Europe is set to grow and compete with the much larger ETF sector in the USA. "
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