UK is ‘taxing London stock market out of existence’: Rachel Reeves urged to axe stamp duty on shares

UK is ‘taxing London stock market out of existence’: Rachel Reeves urged to axe stamp duty on shares. by john-paul ford rojas. updated:. the boss of one of britain’s biggest investment platforms claimed the government is ‘taxing the stock exchange out of existence’ as he called for stamp duty on share trading to be scrapped. richard wilson, chief executive of interactive investor, said action was needed after figures showed the london market has suffered the largest exodus of companies since 2009 this year. it was the latest call for the duty, which levies a 0.5 per cent charge on all uk-listed share purchases, to be scrapped. and it came as john farrugia, co-chief executive of broker cavendish, demanded the end of the tax. wilson said yesterday: ‘we urge the government to recognise the scale of this problem and act decisively. ‘this isn’t just for the health of our markets, but for the health of the uk economy. it is a lose-lose tax. we simply can’t afford not to fix this issue.’. tax plea: figures show that this year, the london stock exchange has suffered the largest exodus of companies since 2009. the comments come after it was revealed that 88 companies have either de-listed from the london stock exchange this year with only 18 taking their place – the biggest net exodus since 2009. the number of new listings in london is on course to be the lowest in 15 years amid a dearth of initial public offerings (ipos). that is despite efforts by the government, regulators and city grandees to try to revive the market by tweaking regulations and unlocking billions of pounds of pension funds for investment. the latest blow came with the decision of ftse 100 equipment hire firm ashtead this month to up sticks and list in new york. others to have crossed the pond include gambling group flutter, whose brands include paddy power. wilson said that the scale of the exodus was ‘eye-popping’ and dismissed initiatives under the previous government ‘the discernible impact of which, aside from shuffling paperwork, has been zero’. he added: ‘we believe that the elephant in the room is stamp duty. we have long campaigned for the removal of stamp duty on uk shares. ‘we are taxing the uk stock exchange out of existence.’. wilson said london was at a disadvantage compared with europe, where levies are lower, and the us, where they are zero. he added: ‘markets live or die on flow, and the stock market today has become untradeable. ‘this impacts depth and valuations and leads to those who can list elsewhere, mostly growth businesses, doing so. ‘what is left is mostly legacy industries who will eventually expire or move.’. cavendish’s farrugia backed the call to scrap stamp duty s, alongside other measures, saying that reviving the stock market ‘needs proper government intervention’. he added: ‘they need to get rid of that because we’re playing in the uk with one arm tied behind our back.’. wilson and farrugia have joined a chorus of city voices including the new lord mayor of london, alastair king, in making the plea. it comes after figures from funds network calastone showed britain’s beleaguered stock market had a reprieve last month when investors piled £317million into uk equity funds, the first inflows since may 2021. however, the positive flow was expected to prove temporary. diy investing platforms. aj bell. aj bell. easy investing and ready-made portfolios. hargreaves lansdown. hargreaves lansdown. free fund dealing and investment ideas. interactive investor. interactive investor. flat-fee investing from £4.99 per month. saxo. saxo. get £200 back in trading fees. trading 212. trading 212. free dealing and no account fee. affiliate links: if you take out a product this is money may earn a commission. these deals are chosen by our editorial team, as we think they are worth highlighting. this does not affect our editorial independence. compare the best investing account for you. share or comment on this article: uk is ‘taxing london stock market out of existence’: rachel reeves urged to axe stamp duty on shares. some links in this article may be affiliate links. if you click on them we may earn a small commission. that helps us fund this is money, and keep it free to use. we do not write articles to promote products. we do not allow any commercial relationship to affect our editorial independence. this article was originally published by a read the original article here.