Labour backbencher adds to criticism of stamp duty on shares

Labour MP Callum Anderson, with a background in financial services, has urged Chancellor John Healey to reconsider the stamp duty on shares in UK trading. Anderson, who represents Buckingham and Bletchley, has proposed a list of growth policies for Healey to prioritize in the upcoming Budget. In a LinkedIn essay, Anderson called for a proper review of the merits of the current 0.5% stamp duty on shares listed in UK markets.

He argued that the tax raises costs for ordinary investors and makes buying British less attractive compared to international companies. This stance makes Anderson the top Labour MP to publicly criticize the stamp duty on shares, which generates between £3bn to £4bn annually for the government. The tax has faced significant criticism from City figures, including those at Peel Hunt and the Association of Investment Companies, as London market listings have dwindled in recent years.

Dan Neidle, a tax expert, suggested that cutting stamp duty on shares would have the most positive impact on growth. Anderson also proposed investment reliefs allowing founders to defer capital gains tax when reinvesting proceeds into new UK companies and extending corporation tax expensing to a broader range of products. He suggested the government should consider designing a UK state pension fund to reduce its exposure to overseas investors.

Anderson proposed the idea of issuing a defence gilt to older generations, framed as a trade-off between a future inheritance tax liability and a lower coupon today, to boost spending on the military. The proposal has backing from the Liberal Democrats and some Labour MPs.