“The abolition of stamp duty on Exchange Traded Funds (ETFs) is great news for the UK investment management industry and should invigorate the UK market in ETFs. It means that the UK can now be included on the short list of countries for ETF providers seeking to set up new platforms.
“ETFs contain a bundle of securities that track the performance of a specific market index. They are a relatively new vehicle and to date have been largely domiciled overseas.
“The announcement to abolish stamp duty on transactions in ETFs will enable the establishment of such funds onshore and is consistent with the announcement earlier this year to abolish the charge on transactions in shares in AIM-listed companies and OEICs.
“UK investment managers and ultimately savers will welcome this move by the Chancellor, and ETF providers should analyse the impact the UK's treaty network could have on returns in light of this development.”
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Zoe Sheppard, KPMG Corporate Communications
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.