Update: Stamp duty on ETFs abolished

Stamp duty on Exchange Traded Funds (ETFs) is to be abolished from April 2014 in a bid to encourage more firms to domicile products in the UK.

The move is an attempt to bring the UK into line with other playing fields: though London is Europe's biggest market for ETF trading, the vast majority of ETFs are domiciled offshore in order to avoid investors incurring the stamp duty. "Today, we also abolish stamp duty for shares purchased in exchange traded funds to encourage those funds to locate in the UK," the Chancellor said. The move follows other investment tax-breaks to have been introduced this year as the government looks to boost the attractions of the UK asset management industry and investing as a concept. In March's...