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London Stock Exchange chief Julia Hoggett has urged Chancellor John Healey to remove stamp duty on shares and restore tax incentives for domestic investment. She said a package of measures could unlock about £122 billion over six to eight years, while critics of broader incentives say the government should focus on improving the UK’s economic fundamentals.
London Stock Exchange chief Julia Hoggett has urged Chancellor John Healey to scrap stamp duty on shares and restore incentives for UK investment, arguing that current rules discourage domestic investors and make London less attractive to companies. Her proposals come as the UK faces a shortage of new listings and some companies choose overseas markets.
Hoggett called for the government to create what she described as “structural incentives” for companies to list in London and for investors to support UK businesses. Her proposals include a pathway to abolishing the 0.5 per cent stamp duty charged when investors buy London-listed shares, beginning with purchases made through ISAs or by eligible pension funds.
She also called for the return of the dividend tax credit, which was abolished in 2016, and for inheritance tax breaks linked to investment in UK companies. Hoggett said the proposed package could unlock about £122 billion over six to eight years. That is her estimate; the report does not provide the assumptions behind it or an independent assessment.
Hoggett said Britain had no shortage of strong companies or available capital, but that negative sentiment about the UK market was affecting investment. She told the BBC: “If we want Britain to back Britain, which is what I hear the Chancellor and the Prime Minister saying, then let’s make sure that we’re creating structural incentives to do so. We need to take the handbrake off.”
The proposals address two connected concerns: whether UK companies can attract enough investment at home and whether London can compete with other markets for listings. Under the rules described in the report, buying London-listed shares carries a 0.5 per cent tax, while purchases of overseas shares do not face the same levy. That difference may influence where some investors place their money, although the report does not quantify its effect on investment decisions.
Hoggett’s suggested changes would shift some of the cost of investing and listing, with potential implications for investors, companies seeking capital and government tax receipts. Supporters argue that greater domestic investment could contribute to business growth. The scale of any effect would depend on policy design and how investors and companies respond; the £122 billion figure is an estimate put forward by Hoggett, not a confirmed outcome.
The debate also reflects concern about the loss of companies to overseas exchanges. The report cites Flutter, which moved its listing to New York, and Tui, which is listed in Frankfurt. UK-based firms including Arm chose Wall Street for initial public offerings, while London-based data-centre company Nscale filed for a forthcoming New York float, according to the report.
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Recent departures from the London market
The call comes amid wider concern in the City about the number of companies listing in the UK and businesses that have moved or chosen to list elsewhere. The examples in the report span both existing firms and companies seeking a public listing. They help explain why the LSE chief is focusing on incentives for both investors and businesses, but they do not establish that stamp duty alone caused those decisions.
Stamp duty on share purchases is one of several factors that can shape the cost of investing. Hoggett framed the charge as a disadvantage for UK-listed shares compared with overseas stocks. Her proposed response is not limited to that tax: she is also seeking changes to dividend and inheritance tax treatment to encourage investment in domestic companies.
There is not unanimous support for the full package. Charles Hall, head of research at broker Peel Hunt, backed the case for removing barriers and increasing incentives. Julian Jessop, an economics fellow at the Institute of Economic Affairs, supported abolishing stamp duty but said the case for wider incentives was less convincing.
““We need to take the handbrake off.””
— Julia Hoggett, London Stock Exchange chief executive, speaking to the BBC
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Policy response and effects remain open
The report does not say whether Healey or the government has accepted, rejected or formally considered Hoggett’s proposals. There is no reported timetable for a decision, and it is unclear whether any changes would be included in a future fiscal announcement.
The proposed package’s estimated £122 billion in potential investment is Hoggett’s projection over six to eight years. The report does not explain how that figure was calculated, how much would represent new investment rather than money redirected from other assets, or what the proposals might cost the public finances through reduced tax revenue.
It is also uncertain how much stamp duty contributes to decisions to list or invest overseas, compared with other factors such as company valuations, market conditions and investor demand. The competing views in the report are arguments about likely effects, not evidence that the proposed changes would produce a particular level of growth or listings.
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Whether ministers take up the proposals
The immediate next development would be a response from the Chancellor or other government representatives. The report gives no indication that a policy decision has been scheduled. Investors and companies will also be watching for any further detail on the design of Hoggett’s suggested changes, including which ISA investments or pension funds might qualify for an initial stamp duty exemption.
Any eventual government proposal would need to specify its scope, timing and treatment of tax credits and inheritance tax. Until ministers set out a position, Hoggett’s comments remain a request for policy change rather than an announced reform.
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Key Questions
What has the London Stock Exchange chief asked the Chancellor to do?
Julia Hoggett has urged John Healey to remove stamp duty on share purchases and restore incentives for domestic investment, including the dividend tax credit and inheritance tax breaks linked to UK investing.
How much stamp duty is charged on London-listed shares?
The report says investors pay 0.5 per cent when they buy London-listed stocks. It says there is no equivalent levy when they buy overseas shares.
Has the government agreed to scrap the tax?
No decision is reported. Hoggett’s comments are a call for action; the report does not include a government response or a timetable for any change.
Where does the £122 billion estimate come from?
Hoggett said her proposed package could unlock about £122 billion over six to eight years. The report does not give the calculation or independently verify the estimate.
Do all supporters back the proposed tax incentives?
No. Peel Hunt’s Charles Hall backed removing barriers and increasing incentives. Economist Julian Jessop supported abolishing stamp duty but said the case for broader incentives was less convincing.
Source: rss
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