The UK should consider taxing cryptocurrency purchases while cutting taxes on stock investments to encourage economic growth, according to Lisa Gordon, chair of investment bank Cavendish.<\/p>\n\n\n\n
Gordon believes the current 0.5% stamp duty on London Stock Exchange shares discourages equity investment, especially among younger Britons. Instead, she suggests applying that tax to crypto purchases.<\/p>\n\n\n\n
\u201cIt should terrify all of us that over half of under-45s own crypto and no equities,\u201d Gordon said in a March 23 interview with The Times. \u201cI would love to see stamp duty cut on equities and applied to crypto.\u201d<\/p>\n\n\n\n
Stamp duty on UK shares currently brings in about \u00a33 billion ($3.9 billion) annually. Gordon argues that reducing this tax could encourage more people to invest in local companies. This, in turn, might inspire more firms to go public in the UK, fueling broader economic growth.<\/p>\n\n\n\n
Gordon described crypto as a \u201cnon-productive asset\u201d that doesn\u2019t contribute to the economy in a meaningful way.<\/p>\n\n\n\n
\u201cEquities provide growth capital to companies that employ people, innovate, and pay corporation tax,\u201d she said. \u201cThat is a social contract. We shouldn\u2019t be afraid of advocating for that.\u201d<\/p>\n\n\n\n
UK regulators have noted rising crypto ownership. As of November, around 12% of UK adults\u2014about 7 million people\u2014held crypto, with 36% of those under age 55.<\/p>\n\n\n\n
However, Gordon warns that many individuals have moved from investing to merely saving. \u201cThat is not going to fund a viable retirement,\u201d she said.<\/p>\n\n\n\n
A 2022 survey by the Financial Conduct Authority (FCA) showed that while 70% of adults had savings accounts, only 38% held shares directly or through tax-advantaged accounts. Nearly three in four people aged 18\u201324 had no investments at all.<\/p>\n\n\n\n
The situation has worsened amid a cost-of-living crisis. In the year leading up to January 2024, 44% of UK adults either reduced or stopped saving and investing. Nearly one in four had to dip into savings or sell investments to meet daily expenses.<\/p>\n\n\n\n
Gordon, a member of the Capital Markets Industry Taskforce, supports efforts to revitalize the local market. Cavendish would benefit directly, as it advises companies exploring public listings.<\/p>\n\n\n\n
According to a January report by EY, the London stock market saw only 18 companies list in 2024, down from 23 the year before. Meanwhile, 88 companies either delisted or switched markets, often citing poor liquidity and lower valuations compared to the U.S.<\/p>\n\n\n\n
Despite this, Gordon insists the UK remains a \u201csafe haven\u201d compared to U.S. markets, which have experienced significant volatility due to tariff threats and recession fears.<\/p>\n\n\n\n
Crypto markets have not been immune to downturns either. Bitcoin has dropped 11% over the past month, although it has risen 2% in the last 24 hours, currently trading around $85,640.<\/p>\n","protected":false},"excerpt":{"rendered":"
The UK should consider taxing cryptocurrency purchases while cutting taxes on stock investments to encourage economic growth, according to Lisa Gordon, chair of investment bank Cavendish. Shift Taxes to Crypto, Not Stocks Gordon believes the current 0.5% stamp duty on London Stock Exchange shares discourages equity investment, especially among younger Britons. Instead, she suggests applying […]<\/p>\n","protected":false},"author":6,"featured_media":937,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2,43],"tags":[],"class_list":{"0":"post-13995","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-featured","8":"category-general-news"},"acf":[],"yoast_head":"\n