Removing stamp duty on shares would be a ‘big bang’ for the city, says fund manager Abrdn

Abrdn has called on Britain to achieve a ‘big bang’ by abolishing stamp duty on shares, after figures showed UK retail investment in the stock market is the lowest in the G7.

A report from the fund manager shows that British savers – excluding pensions – hold just 8 percent of their assets in shares and investment funds, compared to 33 percent in the US.

Britain also follows the other members of the G7 group of advanced countries – Canada, Italy, France, Japan and Germany.

Xavier Meyer, managing director of investments at Abrdn, said: ‘When it comes to investing in shares outside our pensions, Britain is a street behind many developed countries.’

Untapped investments: A report from fund manager Abrdn shows that, excluding pensions, UK savers hold just 8% of their assets in shares and investment funds

Increasing the proportion of UK wealth invested in shares to the same level as that in the US could inject up to £3.5 trillion into the capital markets, Abrdn’s report said.

Much of that could go into London-listed shares, reviving the beleaguered market.

The report suggested that the simplest method would be to abolish the stamp duty levy, which charges 0.5 percent on UK share transactions.

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