Banks call for scrapping UK share tax to boost London

BRITAIN should scrap its tax on buying shares to increase London’s attraction as a global financial centre as it faces fierce competition post-Brexit, banking body UK Finance said on Tuesday (May 16).

Britain is reforming its financial sector following Brexit, which has fuelled concerns over London’s ability to attract top company listings.

“In the short-term, the 0.5 per cent stamp duty currently charged on share purchases should be removed to reduce the cost of investing and help wider participation,” UK Finance chief executive David Postings told an event.

UK Finance launched a report which made recommendations on how to help the “pre-eminent” financial sector face tough global competition.

“It is time that we reinvigorated the markets here to make them even more attractive and just as dependable and safe,” Postings said.

Postings also called on the government to fast track issuance of digitised UK government bonds to make them more accessible to a wider range of investors.

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The recommendations will feed into a broader report being compiled by the UK Capital Markets Industry Taskforce, due in the autumn. REUTERS