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Budget 2025: Possible Stamp Duty Exemption for New Share Purchases 

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Bright Insights: Autumn Budget 2025

At Bright Solicitors, we specialise in supporting private companies through every stage of growth- and we welcomed 2 new team members last month to support in this process. 

The Autumn Budget will be announced on November 26th, and our Corporate Department is here to prepare you in advance of what could be announced to help you stay ahead of regulatory changes and make informed decisions that protect and grow your business. 

What Might Be Changing? 

The UK Treasury is currently considering a temporary stamp duty holiday for new share purchases on the London Stock Exchange. While this proposal is aimed at encouraging more public listings, it could still have indirect implications for private companies, particularly those considering future investment rounds or an eventual IPO. 

The proposal could exempt newly listed companies from the 0.5% stamp duty on share transactions for a period of 2 to 3 years, adding to the existing exemption for shares purchased on the day of an IPO.  

Although no final decision has been made, it’s a signal that the government is looking to make the UK more competitive for equity investment. 

Why It Matters for Private Companies 

Even though your company may not be listed, this potential reform could still affect you in several ways: 

  • Investor appetite may shift: If public markets become more attractive, some investors may prioritise listed opportunities over private ones. However, others may see this as a chance to build positions in private companies ahead of a future IPO. 
  • Valuation dynamics could change: A more active public market may influence how private companies are valued, especially in sectors where public comparables are used. 
  • Exit strategies may evolve: If IPOs become more cost-effective, private companies might consider listing as a more viable exit route than trade sales or private equity buyouts. 

What You Can Do to Prepare 

Here are a few practical steps private companies can take now: 

  • Review your capital structure: Consider whether your current shareholding arrangements are flexible enough to accommodate future investment or a potential listing. 
  • Engage with your investors: Keep communication open with shareholders and potential investors about how market changes might affect your growth strategy. 
  • Seek legal advice early: Whether you’re planning a funding round, restructuring, or exploring long-term exit options, our team can help you navigate the legal landscape and prepare for what’s ahead. 

Let’s Talk 

If you’re a private company preparing for investment, restructuring, or exploring long-term growth strategies, our team is here to help. We offer clear, practical legal advice tailored to your business goals. 

Follow us for more legal insights or contact our Corporate Department for more information.