Lisa Gordon, chair of investment bank Cavendish, has proposed that the UK introduce a tax on cryptocurrency purchases to encourage more Britons to invest in local equities, which she believes could stimulate economic growth.
In a report by The Times on March 23, Gordon expressed concern over the growing preference for crypto investments among younger generations. “It should terrify all of us that over half of under-45s own crypto and no equities,” she stated, arguing that shifting financial priorities toward equities could benefit the economy.
Gordon proposed reducing stamp duty on stock investments while introducing a similar tax on crypto transactions. Currently, UK investors pay a 0.5% stamp duty on shares, generating about £3 billion annually. She believes this policy could encourage investment in local businesses and lead more firms to go public in the UK. In her view, cryptocurrency is a “non-productive asset” that doesn’t contribute to economic growth, unlike equities, which provide growth capital, create jobs, and support the economy through taxes.
Gordon’s comments highlight the rising adoption of cryptocurrency in the UK, with the Financial Conduct Authority (FCA) stating that about 12% of British adults own digital assets, mainly those under 55. She emphasizes the trend of prioritizing savings over investments, warning that this approach may jeopardize viable retirement plans. The FCA’s 2022 data revealed that while 70% of adults have savings accounts, only 38% invest in stocks. The cost of living crisis exacerbated financial issues, with a 2024 survey showing that 44% of adults reduced savings or investments, and nearly a quarter used savings to cover daily expenses.
As a Capital Markets Industry Taskforce member, Gordon is working to revitalize the declining UK stock market, which saw only 18 companies go public in 2023 and 88 delist, according to a report from consulting firm EY. Despite these challenges, she believes the UK remains a “safe haven” for investors amid the volatility of the US market.
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