# Make it a Budget for Businesses: Abolish Stamp Duty on Private Share Transactions Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-03-08 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Chancellor Hammond's Spring Budget 2017: Implications Meta Description: Gain insights into Chancellor Hammond's first and last Spring Budget amid Brexit negotiations. Discover how to boost UK high-growth businesses. URL: https://financedigest.com/make-it-a-budget-for-businesses-abolish-stamp-duty-on-private-share-transactionshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/img0008-1824-1736844112957-compressed.jpg) **_Stuart Lucas,_** _Co-CEO of Asset Match, for Finance Digest_ The Spring Budget is always one of the standout events on the financial and political calendar, but the 2017 iteration takes on added importance. Wednesday 8 March will be Philip Hammond’s first Spring Budget as Chancellor of the Exchequer – and, with the annual announcement scheduled to move to the autumn as of the end of this year, it will also be his last.More significantly, as the UK prepares to begin Brexit negotiations with the European Union (EU), the [speech provides a vital opportunity for the Government](https://www.financedigest.com/factbox-uk-government-sets-out-priorities-in-queens-speech.html "Factbox-UK government sets out priorities in Queen’s speech") to outline the clear direction that it intends to take the country’s economy during this period of transition. ![Stuart Lucas](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/sl-headshot-1736844112839-compressed.jpg) Stuart Lucas Chancellor Hammond will be taking centre stage with reasons for optimism; most notably, the Bank of England [recently updated its 2017 GDP growth forecasts](https://www.financedigest.com/percutaneous-tibial-neuromodulation-devices-market-analysis-recent-trends-and-regional-growth-forecast-by-2027.html "Percutaneous Tibial Neuromodulation Devices Market Analysis, Recent Trends and Regional Growth Forecast by 2027") for a second time, increasing predictions from 1.4% to 2%. The upward revisions demonstrate the resilience of the UK’s private sector in the wake of a momentous 2016 that included the EU referendum, an overhaul of the Tory leadership and Cabinet, interest rates [falling to record lows](https://www.financedigest.com/german-real-yields-fall-to-new-record-lows-on-stagflation-fears.html "German real yields fall to new record lows on stagflation fears"), and Donald Trump winning a shock US presidential election. However, the Government cannot take for granted the impressive performance of the economy over the past 12 months. More must be done, particularly when it comes to [enabling investment](https://www.financedigest.com/enabling-effective-esg-investment.html "Enabling effective ESG investment") into the country’s high-growth businesses. Three years ago the Government took the decision to abolish Stamp Duty taxes on all transactions made by private investors on the [London Stock Exchange’s](https://www.financedigest.com/london-stock-exchange-pours-cold-water-on-merging-listing-segments.html "London Stock Exchange pours cold water on merging listing segments") Alternative Investment Market (AIM) and the High Growth Segment (HGS) of the Main Market. It was a welcome [move to encourage private investment](https://www.financedigest.com/these-days-tik-tokers-can-move-markets-more-than-investment-analysts.html "These days Tik-Tokers can move markets more than investment analysts…") into Britain’s most established companies, but the Government’s fiscal reforms did not go far enough. The [opportunity to recycle some of the £300 billion in locked-in equity in UK private](https://www.financedigest.com/private-equity-resilience-leads-to-opportunity.html "Private Equity – Resilience Leads to Opportunity") companies is something that should be embraced, and the Government must now reconsider the barriers which impede upon investment into these companies. In light of the forthcoming Brexit negotiations, private [businesses need to be placed on a level playing field with the full portfolio of British and foreign](https://www.financedigest.com/foreign-business-travel-missing-ingredient-for-irish-hotel-recovery-dalata.html "Foreign business travel missing ingredient for Irish hotel recovery – Dalata") companies listed on AIM and the Main Market. With [16% of British private equity business investors](http://www.assetmatch.com/media/35149/Shareholder_Sentiment_Index_2017.pdf) stating that they would like to invest in high-growth companies but feel trapped in their existing shareholdings, policies designed to recycle locked-in wealth into the next generation of companies should be at the forefront of Government minds. In Wednesday’s Budget, Chancellor Hammond has the chance to take the abolition of private share Stamp Duty further – specifically, share transactions in all of the country’s high-growth [businesses must be exempt from this tax](https://www.financedigest.com/employee-retention-tax-credit-is-a-lifeline-for-businesses.html "Employee Retention Tax Credit is a lifeline for businesses"), not only those on AIM or the Main Market. Scale-up businesses across the country typically fall outside of these trading market places and are therefore still subjected to this tax; something that is counterproductive in light of the [Government’s renewed focus on this category of business](https://www.financedigest.com/uk-government-to-cap-energy-bills-for-businesses-bloomberg.html "UK government to cap energy bills for businesses – Bloomberg"). Reflective of their critical importance to national productivity, there has been a clear government agenda over recent months concentrated on supporting UK scale-ups, particularly in their ability to [secure growth](https://www.financedigest.com/secure-web-gateway-market-expectations-growth-trends-highlighted-until-2029.html "Secure Web Gateway Market Expectations & Growth Trends Highlighted Until 2029") finance. This includes launching the Bank Referral Scheme and making substantial investments in national infrastructure – such as £1 [billion to develop full-fibre broadband and 5G connectivity, and a £1.8 billion investment](https://www.financedigest.com/toyota-motor-to-invest-5-3-billion-in-japan-u-s-for-ev-battery-supply.html "Toyota Motor to invest .3 billion in Japan, U.S. for EV battery supply") in Local Enterprise Partnerships. Meanwhile, in January 2017 the [Conservative Party](https://www.financedigest.com/rishi-sunak-declared-next-leader-of-uk-conservative-party-to-become-next-pm.html "Rishi Sunak declared next leader of UK Conservative Party, to become next PM") also appointed a new ‘Scale-Up Champion’in the form of Margot James. In light of these positive developments in favour of high-growth SMEs, as well as the initial reforms on Stamp Duty taxes on share transactions, the [time is nigh for the Government to take the logical next step](https://www.financedigest.com/deliveroos-financial-hot-potato-time-for-new-cfo-to-step-up-to-the-plate.html "Deliveroo’s Financial Hot Potato: Time for new CFO to step up to the plate"). Limiting exemption from Stamp Duty to businesses on AIM or the HGS of the Main [Market neglects the full spectrum of businesses that fulfil a critical role in the UK’s private sector growth](https://www.financedigest.com/liquid-smoke-market-growth-future-prospects-and-competitive-analysis-2022-to-2032.html "Liquid Smoke Market Growth, Future Prospects And Competitive Analysis 2022 to 2032"). To truly create an agenda that is [supportive of Scale-up Britain](https://www.financedigest.com/taiwans-president-looks-forward-to-britain-supporting-its-cptpp-bid.html "Taiwan’s President looks forward to Britain supporting its CPTPP bid") – particularly as the country heads for Brexit – the Government must seize the opportunity presented by the 2017 Spring Budget and halt its taxation on private investment into all high-growth companies in the UK. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---