Speaking: Stock market boss Julia Hoggett has described the tax as ‘pernicious’
An influential city group has called on the next government to review stamp duty on shares within 100 days of taking power.
TheCityUK said the tax “puts the UK at a competitive disadvantage” as it listed its demands ahead of next month’s election.
Tax reform could boost investment in London-listed shares at a crucial time for the stock market, the financial services firm said.
The group joins a chorus of City heavyweights who have called for the levy to be scrapped.
The tax charges investors 0.5 percent if they buy British shares, but nothing if they put money into foreign companies.
Earlier this week, the head of the Investment Association said abolishing stamp duty on shares was an ‘obvious’ way to boost UK shares.
“It is one of the highest in the world and reforms would make the market more attractive,” said Chris Cummings, chief executive of the management trade body.
Meanwhile, London Stock Exchange boss Julia Hoggett has described the tax as ‘pernicious’ and former Abrdn chief Stephen Bird has said it is ‘as unpatriotic as it is economically destructive’.
The tax is believed to have contributed to the downturn of London’s ailing stock market, which has suffered a flood of takeover offers and companies moving to the US stock exchange.
A spokesperson for TheCityUK said the next government should ‘review the future of trading stamp duty to encourage greater UK institutional and private investment in UK equities’. The spokesperson said: ‘As a direct tax on liquidity, this places Britain at a competitive disadvantage.’
Other recommendations for the first 100 days include encouraging greater UK investment in shares of UK companies and developing a strategic plan to boost economic growth.
TheCityUK chief executive Miles Celic said: ‘Financial and related professional services are the heartbeat of the UK economy.
‘The industry is a key national employer, supporting people at every stage of their lives and enabling economic growth.
“We want to see a new era of policy certainty and collaboration between government and industry to ensure it can make an even greater contribution to driving investment, innovation and growth across the country.”