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Market praise for ETF stamp duty cut
06 December 2013
The UK Government’s move to axe stamp duty on ETFs has been welcomed
The UK Government’s decision to abolish stamp duty
on shares purchased in exchange traded funds (ETFs) has been
welcomed by a trade association and a major ETF provider.
Chancellor George Osborne said in his Autumn Statement on
December 6 that the stamp duty cut would come into place from
April 2014. The stamp duty currently applies if an ETF were
domiciled in the UK.
Helen Forrest, head of policy, UK National Association of
Pension Funds (NAPF), said the move will be welcomed by UK
pension schemes because it "increases the investment
opportunities for some schemes".
She added: "Interest in these funds may increase post the
abolition of stamp duty, particularly amongst smaller pension
schemes looking to diversify portfolio risk."
Mark Johnson, head of UK sales at iShares also welcomed the
"This should ultimately increase consumer choice and support
the growth in the use of ETFs by a wide range of investors from
retail through to pension funds and insurance companies."
However, some market participants believe the move will not
have a big impact on the ETF industry. Alan Miller, co-founder
of SCM Private, told Global Investor/ISF that it was a "bizarre