Chair of investment bank Cavendish, Lisa Gordon has said that the UK should scrap taxes on stock purchases and instead apply them to crypto buying. She argued that taxing crypto purchases could boost the country’s economy by making people invest their savings into local company shares.
The Cavendish chair also said that many people had “shifted to saving rather than investing” and argued that it is not going to fund a viable retirement. She stated that a cut could sway people to put their savings into shares of local companies, which could make other firms go public in the country and help boost the economy.
Lisa Gordon urges the UK to tax crypto purchases
Cavendish chair Lisa Gordon has urged the UK to remove taxes on stock purchases and instead implement them on crypto purchases. She believes that it will stimulate the country’s economy since over half of the under-45s already own virtual currencies.
“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.”
-Lisa Gordon, Non-Executive Director and chair of Cavendish.
The bank’s official noted that the United Kingdom currently had a 0.5% tax on shares in its largest securities market, the London Stock Exchange. The country’s stock exchange also generates around 3 billion British pounds ($3.9 billion) a year in tax revenue.
Lisa Gordon argued that a cut on stock purchases could sway people to put their savings into shares of local companies. She believes that it could then spark other companies to go public in the UK and help the economy. The Cavendish chair referred to crypto as “a non-productive asset” that “doesn’t feed back into the economy.”
Lisa Gordon acknowledged that equities contributed as a social contract by providing growth capital to companies that employ people, innovate and pay corporation tax. She also highlighted that “we shouldn’t be afraid of advocating for that.”
Crypto ownership surges in the United Kingdom
The UK’s Financial Conduct Authority stated in November that digital asset ownership surged to 12% of adults, equivalent to around 7 million people. The FCA’s November 26 announcement also indicated that 36% of crypto owners were under 55 years old.
Co-managing director and co-founder of investment firm KR1 George McDonaugh said that the growing number of crypto holders showed an “extremely strong” appetite for digital assets. He also believes that crypto is now mainstream due to the fact that people are increasingly recognizing digital assets as part of a wider investment portfolio, including for the long term. McDonaugh stated that “this research shows crypto is already very popular with consumers in the UK – it’s time for regulators and lawmakers to catch up.”
The FCA conducted a 2022 survey, finding that 70% of adults had savings accounts. The research also indicated that 38% of adults either directly held shares or held them through an account, which allowed nearly 20,000 British pounds ($26,000) of tax-free savings a year. The survey also found that three in four 18 to 24-year-olds held no investments.
The country’s regulator also reported that the cost of living crisis had seen 44% of all adults either stop or reduce saving or investing in the 12 months to January 2024. FCA also noted that nearly a quarter of adults used savings or sold their investments to cover day-to-day costs.
Lisa Gordon is also a member of the Capital Markets Industry Taskforce, which is a group of industry executives aiming to revive the local market. The Cavendish Bank hopes to benefit from the group as it advises companies on how to navigate possible public offerings.
EY Data and Insight-Driven Transformation team reported in January that the London stock market had one of its “quietest years on record,” with just 18 companies listing in 2024, down from 23 the previous year. The consulting firm also mentioned 88 firms delisted or transferred from the exchange, with many arguing they moved due to “declining liquidity and lower valuation compared to other markets” such as the U.S.
Gordon also argued that the UK was a “safe haven” compared to markets such as the U.S., which had lost trillions of dollars in its stock markets due to President Trump’s tariff threats and fears of a recession.
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