Cut stamp duty on shares, Chancellor Rachel Reeves told

Under pressure: Chancellor Rachel Reeves

The Chancellor has been urged by the Investment Association (IA) to scrap stamp duty on shares to boost the stock market.

Investors must pay 0.5 per cent tax if buying UK-listed stock, but not foreign-listed firms. 

Critics have long argued that the levy acts as a deterrent to putting money into the London market. 

The IA said it was one of the highest such taxes in the world.

The body, which represents firms managing £9.1trillion of assets, restated its position that the tax should be abolished as an incentive for pension funds to boost their allocations to UK-listed equities.

By scrapping it, Ministers would be ‘enhancing the attractiveness of UK equity markets to corporates and providing wider benefits to the economy’, it said.

DIY INVESTING PLATFORMS

Easy investing and ready-made portfolios

AJ Bell

Easy investing and ready-made portfolios

AJ Bell

Easy investing and ready-made portfolios

Free fund dealing and investment ideas

Hargreaves Lansdown

Free fund dealing and investment ideas

Hargreaves Lansdown

Free fund dealing and investment ideas

Flat-fee investing from £4.99 per month

interactive investor

Flat-fee investing from £4.99 per month

interactive investor

Flat-fee investing from £4.99 per month

Get £200 back in trading fees

Saxo

Get £200 back in trading fees

Saxo

Get £200 back in trading fees

Free dealing and no account fee

Trading 212

Free dealing and no account fee

Trading 212

Free dealing and no account fee

Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.

Compare the best investing account for you

***
Read more at DailyMail.co.uk