Scrapping stamp duty could help Reeves regain ground lost at Mansion House
interactive investor’s chief executive says government must ditch stamp duty on UK shares after chancellor backs away from bolder reforms in Mansion House speech.
16th July 2025 08:56
by Camilla Esmund from interactive investor
Richard Wilson, chief executive of interactive investor, the UK’s leading flat-fee investment platform, has responded to Chancellor Rachel Reeves’ Mansion House speech by urging the government to stop playing it safe and start delivering real reform for investors.
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He said: “Bold decisions are needed to fix, and build, the UK’s investment culture. The chancellor’s Mansion House speech was full of welcome intentions, but we’re still missing some of the concrete steps that would help to get more people investing.
“The chancellor backed away from capping cash ISAs, but it means that the overall goal of ISA simplification has been delayed completely. We’ve long said that the focus of ISA reform needs to be on simplification, as complexity frustrates and confuses potential investors.
“If she wants to make a real difference, she should address the single most damaging friction for the UK stock markets and everyday investors: stamp duty on UK shares.
“Stamp duty on stocks and shares is a tax on backing British business and scrapping it should be the cornerstone of any serious investment reform. It’s lose-lose. It’s a charge on confidence. A tax on participation. A drag on liquidity. It makes investing in UK companies more expensive than it should be and sends the wrong signal about where we want people to put their money.
“If we’re serious about revitalising the London market, scrapping stamp duty should be top of the chancellor’s to-do list. Research by interactive investor found that 72% of retail investors would be more likely to invest in UK shares and trusts if stamp duty was scrapped – compared to just 7% who said lowering the cash ISA allowance would have an impact.
“We’ve heard time and time again that government wants to boost long-term investing – now it needs to back those words with substance. Getting rid of stamp duty on shares is one of the fastest, simplest, and boldest things this government could do to shift the dial.
“Investors need a level playing field, a simpler system, and the confidence that investing is worth it. Scrap stamp duty. Cut the complexity. And give the UK’s savers a reason to back the markets, and back Britain.”
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