With effect from 28 April 2014, the Government is abolishing the 0.5% stamp duty or stamp duty reserve tax charge on acquisitions of shares traded on recognised growth markets.

To qualify as a recognised growth market, a market must be a recognised stock exchange and meet one or both of the following two conditions:

• a majority of companies trading on that market are companies with market
  capitalisations of less than £170m in the qualifying period;
• the market's rules require that companies seeking admission demonstrate at least 20% compounded annual growth in revenue or employment over the three years preceding admission.

The Government's objective is to boost investor participation in equity growth markets and improve the conditions for growing companies to raise equity finance. Applications for 'recognised growth market' status should be made to HMRC. Overseas growth markets can also apply for recognition if they meet the relevant conditions.

Eligible securities qualify for the exemption wherever they are traded and will be designated as exempt for stamp duty reserve tax in CREST at a static data level.