The boss of one of Britain’s biggest investment platforms claimed the Government is ‘taxing the stock exchange out of existence’ as he called for stamp duty on share trading to be scrapped. Richard Wilson, chief executive of Interactive Investor, said action was needed after figures showed the London market has suffered the largest exodus of companies since 2009 this year.
It was the latest call for the duty, which levies a 0.5 per cent charge on all UK-listed share purchases, to be scrapped. And it came as John Farrugia, co-chief executive of broker Cavendish, demanded the end of the tax. Wilson said yesterday: ‘We urge the Government to recognise the scale of this problem and act decisively.
‘This isn’t just for the health of our markets, but for the health of the UK economy. It is a lose-lose tax. We simply can’t afford not to fix this issue.’. Tax plea: Figures show that this year, the London Stock Exchange has suffered the largest exodus of companies since 2009.
The comments come after it was revealed that 88 companies have either de-listed from the London Stock Exchange this year with only 18 taking their place – the biggest net exodus since 2009. The number of new listings in London is on course to be the lowest in 15 years amid a dearth of initial public offerings (IPOs).
That is despite efforts by the Government, regulators and City grandees to try to revive the market by tweaking regulations and unlocking billions of pounds of pension funds for investment. The latest blow came with the decision of FTSE 100 equipment hire firm Ashtead this month to up sticks and list in New York.
