The London Stock Exchange Group has made a submission to Government ahead of the UK Budget for the tax year 2013/14. We are asking the UK Government to make notable positive changes to the tax and regulatory environment to continue to improve access to equity funding for growing companies, including those on AIM. These changes are aimed at diversifying and widening the pool of capital providers willing and able to support and invest in AIM companies.
Specific recommendations are:
- Reduce taxes on equity investment, to mobilise a wider pool of capital dedicated to growing businesses. In particular:
a) Abolish stamp duty for UK AIM companies to help reduce transaction costs for investors in small & mid caps
b) Introduce a lower Capital Gain Tax for investmetn in AIM companies to divert investment flow to growing businesses
- Modernise the UK’s regulatory approach towards small and mid cap securities, by reducing investment barriers. Specifically, this includes ensuring the FSA’s interpretation and enforcement of the UK’s Conduct of Business Standards is not seen by the investor community as a sign that growing businesses are unsafe investments.
- Prioritise support for the UK’s growing businesses in Europe, to ensure that EU regulation does not adversely impact investors’ ability to invest in small and mid caps.
LSEG Budget submission 2013