Stamp duty on shares is set to rake in nearly £24billion over the next five years – despite criticism it is ‘a tax on investing in UK-listed companies’ and deters savers.
According to the latest Office for Budget Responsibility (OBR) forecast, income from the tax is forecast to rise each year from £4.4billion in 2025-26 to £5.1bn in 2029-30.
The figure is nearly 60 per cent higher than in 2023-24, the last full year the Tories were in office, when £3.2billion was raised.
Critics called for the levy to be cut or scrapped to boost investment in UK companies.
Chris Beckett, head of equity research at investment management firm Quilter Cheviot, said because the tax is only paid when buying shares in UK-registered companies, it ‘puts them at a disadvantage’ compared with international competitors.
He added: ‘Reforming stamp duty on shares would help to give the UK’s financial markets a much-needed confidence boost.’
Revenue: According to the latest Office for Budget Responsibility forecast, income from stamp duty on shares is forecast to rise each year from £4.4bn in 2025-26 to £5.1bn in 2029-30
Susannah Streeter, head of money and markets at Hargreaves Lansdown, called for a cut in the levy, which is charged at a rate of 0.5 per cent for electronic share transfers.
She said: ‘It is unreasonable that investors buying UK shares have to pay stamp duty when most overseas share trades are stamp duty-free.’
Laith Khalaf, head of investment analysis at AJ Bell, said: ‘It’s simply bizarre that a UK investor has to pay 0.5 per cent duty when buying shares in a UK-listed company like AstraZeneca but not a US company like Apple.
It’s effectively a tariff on our own stock market.’
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