The Spring Statement, delivered by the Chancellor of the Exchequer, Rachel Reeves, provided much policy to ponder. Buried within the documents were references to PISCES, or the Private Intermittent Securities and Capital Exchange System—a private securities marketplace.
While still in the works, PISCES aims to provide a viable market for private securities, typically of smaller firms, while addressing the challenges of liquidity.
One of the items shared in the Spring Statement is an exemption from Stamp Duty and Stamp Duty Reserve Tax (SDRT) for shares traded on PISCES. A consultation regarding this topic has started and will run until April 23, 2025.
Globacap CEO Myles Milston voiced his support for Labour’s push to pursue the exemption.
“I strongly support the exemption on Stamp Duty and believe it will be a critical factor in the success of PISCES. Ultimately, PISCES has the potential to make the UK competitive with leading jurisdictions like the U.S., where some European unicorns already trade their shares on Nasdaq Private Market. The U.S. doesn’t have stamp duty, and in the UK, the total tax revenue from it is minimal—just £3.2bn in 2023/24, or 0.39% of total tax revenue (£830bn). Removing it for private share transactions wouldn’t make a dent in the government budget but it will significantly enhance the UK’s competitiveness as a private markets trading hub.”
HM Treasury will share a document with Parliament in May 2025 that provides the legal framework for the PISCES Sandbox. Once the legislation has been produced, the Financial Conduct Authority will publish its rules, and the PISCES Sandbox will be established.