Pressure Builds on Chancellor Reeves to Scrap Stock Trading Tax
Pressure mounts on Chancellor Rachel Reeves to scrap the 0.5 percent stamp duty on stock trading, with advocates like Charles Hall of Peel Hunt pushing for its abolition. Reeves is weighing the impact of this tax on the UK stock market's competitiveness, as companies consider leaving London for exchanges like New York.
Reeves received demands to abolish the tax on October 4, 2023. Some, such as Charles Hall, argue that scrapping the 0.5 percent stamp duty levy would revitalize the UK stock market. Meanwhile, the Chancellor is considering a stamp duty break for investors buying newly listed shares to encourage more companies to list in the UK. This move aims to combat the threat of companies leaving London for rival exchanges, which could happen without intervention.
The Chancellor is under pressure to act, with concerns growing about the UK stock market's competitiveness. Reeves must decide whether to abolish or reduce stamp duty to prevent companies from leaving London and to boost the number of listings in the UK.
