Britain’s 0.5% duty on share purchases in my opinion is a regressive tax before any profit has even been potentially made (and also potentially compounds losses!). It is a tax on income being invested that may have already been taxed, and dampens the Government’s drive to encourage more people to invest their savings in the markets. It also potentially diverts capital to foreign stock markets to the detriment of British companies listed on London’s stock markets.
It should never have been introduced and in particular disproportionately penalises younger lower-income investors (such as I once was) as the compounding impact of that tax deduction will resonate throughout life.
While I would like to see it abolished for all entirely, I would at least like to see The Chancellor of the Exchequer Rachel Reeves abolish it for the under 30s in her forthcoming budget.
UPDATE: I have requested the change is made in correspondence to Rachel Reeves.
