UK eyes crypto tax shift to boost stock market

The UK is considering a policy shift to tax cryptocurrency purchases while reducing levies on stock investments, according to Cavendish chair Lisa Gordon.

Gordon, whose firm advises companies on public offerings, told The Times that the UK’s current tax structure—imposing a 0.5% stamp duty on London Stock Exchange trades—discourages equity investment.

She proposed eliminating this tax and applying it to crypto transactions instead.

“It should terrify all of us that over half of under-45s own crypto and no equities. I would love to see stamp duty cut on equities and applied to crypto,” Gordon stated.

The Financial Conduct Authority (FCA) reported that 12% of UK adults now own cryptocurrency, with 36% of holders under age 55.

Meanwhile, only 38% of adults directly or indirectly hold shares, and nearly three-quarters of 18–24-year-olds have no investments.

Gordon criticised crypto as a “non-productive asset” that “doesn’t feed back into the economy,” contrasting it with equities, which she said provide growth capital for companies that employ workers and pay taxes.

“Equities provide growth capital to companies that employ people, innovate and pay corporation tax. That is a social contract. We shouldn’t be afraid of advocating for that,” he said.

The proposal comes amid broader economic challenges.

The FCA noted that 44% of adults reduced or stopped saving/investing during the cost-of-living crisis, while nearly a quarter tapped savings to cover expenses.

London’s stock market has also faced headwinds, with only 18 companies listing in 2024—a historic low—according to EY.  

Many firms cited declining liquidity and lower valuations compared to markets like the US.

Gordon countered that the UK remains a “safe haven” despite these trends, though crypto markets have mirrored recent declines in US equities, with Bitcoin (CRYPTO:BTC) down 11% over the past month.