Shares traded on the Alternative Investment Market (AIM) are to benefit from the abolition of stamp duty on trades.
The move was announced as part of a swathe of moves within George Osborne’s ‘asset management’ tax changes.
He said: “Medium-sized firms make use AIM to help them grow. Stamp duty on shares traded on growth markets such as AIM is to be abolished.
“While other countries are introducing a financial transaction tax, here we are removing it. This will benefit hundreds of medium-sized firms, supporting jobs and growth across the UK.”
Osborne also ran through the corporation tax rates of various developed countries before confirming the widely anticipated move of a reduction in the UK Corporation Tax.
He said: “From April 2015, the main rate of corporation tax will be reduced by another 1% the lowest business tax of any major economy in the world. We have achieved in one parliament, the largest reduction in corporation tax in the nation’s history.
“We have [already] cut from the 28% inherited to 21% next year. Today I want us to send a message to anyone who wants to invest here or create jobs here. Nothing beats having the most competitive business tax system of any major economy in the world. That is what this government has set out to achieve.”