UK Ought to Impose Taxes on Crypto to Promote Domestic Stock Investments, According to Cavendish Chair
Lisa Gordon, the head of investment bank Cavendish and a participant in the Capital Markets Industry Taskforce, has urged the UK to impose a tax on cryptocurrency transactions while also decreasing taxes on stock investments.
She asserts that this initiative aims to motivate younger British individuals to engage in local stock investments and to bolster the nation’s lagging capital markets.
“It should alarm us all that over half of those under 45 possess digital currency instead of equities,” Gordon stated to The Times in a report released on March 23. “I would be delighted to see stamp duty lowered on equities and imposed on crypto.”
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UK Share Stamp Duty Generates £3 Billion Yearly From London Stock Exchange Transactions
At present, UK investors incur a 0.5% stamp duty on shares that are listed on the London Stock Exchange—yielding approximately £3 billion ($3.9 billion) in tax revenue each year.
Gordon contends that a reduction in this tax could motivate more individuals to invest in domestic firms, potentially leading to a surge in new public listings and revitalizing the UK economy.
Conversely, she characterized cryptocurrencies as “unproductive assets” that fail to contribute to economic advancement.
“Equities offer growth capital to businesses that create jobs, innovate, and pay corporation tax. This constitutes a social agreement. We shouldn’t hesitate to advocate for that,” Gordon remarked.
Data from the Financial Conduct Authority (FCA) at the end of 2023 indicated that roughly 12% of UK adults—around 7 million individuals—owned crypto assets. The majority of these holders were under 55 years of age, with younger groups notably lacking in stock ownership.
CRYPTO TAX 2025!
I need to clarify the confusion regarding Crypto included in Undisclosed Income & Tax at 70% being applied. (Which is not even the right number
how will the industry advance??!
— CA Sonu Jain (Crypto Tax Expert) (@TheWeb3CA) February 2, 2025
Gordon cautioned that younger generations are opting for saving instead of investing, a trend she fears will not foster long-term financial safety.
In spite of favorable tax provisions—permitting individuals to invest as much as £20,000 each year without incurring taxes—only 38% of adults possess stocks directly or through accounts, whereas 70% maintain savings.
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Cost of Living Crisis Forces 44% of UK Adults to Reduce Saving and Investing
A subsequent FCA survey highlighted the impact of the cost of living crisis, revealing that 44% of adults have minimized or ceased saving and investing, with nearly a quarter tapping into their savings or liquidating assets to meet expenses.
Simultaneously, London’s stock trading protocol is confronting its own obstacles. A report from January by EY noted just 18 new listings in 2023, down from 23 in the prior year.
Moreover, 88 companies withdrew from listings or shifted markets, citing liquidity concerns and more attractive valuations overseas.
Nonetheless, Gordon asserts that the UK continues to be a “secure haven” in comparison to other global markets. She contrasted the UK’s stability with the volatility in the U.S., which she linked to political instability and economic pressures—factors that have also affected the digital currency market.
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Key Insights
- Lisa Gordon advocates for a cryptocurrency tax and a decrease in equity stamp duty to stimulate UK stock investment.
- Younger Britons prefer crypto and saving over equities, raising alarms about their future financial stability.
- The UK trading market faces fewer new listings and numerous delistings, despite being perceived as a global secure haven.
The article UK Should Tax Crypto to Encourage Local Stock Investment, Says Cavendish Chair first appeared on 99Bitcoins.
