Report

Sharing the wealth

This report from UK think tank the Centre for Policy Studies argues that not enough has been done to address the competitive disadvantage brought about by stamp duty on shares.

There has been a renewed focus on the competitiveness of the City of London in recent months. Both the Government and Labour have unveiled reforms intended to boost financial services and champion the financial sector by unleashing more capital and investment.

However, as this report by Gerard B. Lyons and Robert Colvile argues, not enough has been done to address the competitive disadvantage brought about by stamp duty on shares – a 0.5% transaction tax.

The report, which includes independent modelling by the Oxera consultancy, analyses the impact of the tax since the financial crisis and shows how abolishing it could lead, among other benefits, to a permanent increase in GDP of between 0.2% and 0.7% in the long term.