This is an official ShareSoc News Item written by Cliff Weight, ShareSoc Policy Director.
We have today, 13 Oct 2020, submitted this response to HMRC.
Our response is limited to Stamp Duty on shares and OEICS (unit trusts).
Our analysis is that:
- The original rationale for stamp duty (cost of wax seal etc) is not just of historical interest. In this age of electronic transactions, these costs are no longer incurred and there is therefore the original justification for the charge is no longer valid.
- Stamp Duty tax is not fair. Many of those that invest do not pay it. Stamp duty is not paid on overseas shares. This adds to the cost of investing in shares in the UK quoted market, for individual investors.
We want STS to be set at a lower rate (say 0.05%) and applied to all trades including HFT, CFD and spread betting.
The HMRC call for evidence can be downloaded here https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/902292/Modernisation_of_the_Stamp_Taxes_on_Shares_Framework_-_call_for_evidence.pdf