The Association of Investment Companies (AIC) has called on UK Chancellor John Healey to “set out a path” to removing stamp duty in his Budget this week, as AIC research shows that UK investors see the importance of backing their own stock market.

The AIC’s recommendations for stamp duty, originally set out in July 2025, include exempting investments made in ISAs and pensions, removing it for investment trusts which suffer double taxation when they buy UK shares, or just progressively reducing the rate, which stands at 0.5% on share purchases.

UK investment trust companies manage assets of around £270 billion and a substantial number of the trusts are managed by Scotland-based asset managers including Baillie Gifford and Aberdeen.

The AIC said its research shows that 74% of British investors agree that it’s important to support the UK by backing UK companies.

This feeling is particularly strong among investors in the North of England (85%), according to the AIC’s annual ESG Attitudes Tracker.

Northerners are also more likely to want to support investments in their own region, with 72% saying they would like to do so if they could. Across the UK, 58% showed an interest in supporting regional projects.

A majority (59%) agree that if investors are getting tax breaks, for example through ISAs or pensions, it’s only fair that they invest some of that money in the UK.

AIC CEO Richard Stone said: “We need UK investors to back the UK. Our research shows that investors do see the connection between the investments they make and the health of our economy.

“There is potential for the Chancellor to turn this economic patriotism into real money when he delivers his Budget this week.

“Setting out a path to remove stamp duty – for example by introducing an exemption for transactions in ISAs and pensions – would make it an easier decision for UK investors to back home-grown companies and investment trusts.”

The AIC added: “Among those who invest in the UK, 58% say that one of the reasons they do this is to support the UK economy …

“However, financial advisers and wealth managers (intermediaries) are more cautious when it comes to backing the UK …

“Three-fifths (60%) of intermediaries agree it’s important to support the UK economy by backing UK companies, compared to 74% of private investors, while 44% agree that if investors are getting tax breaks it’s only fair they invest some of their money in the UK, compared to 59% of private investors.”