Stamp Duty Should Shift from Equities to Crypto, Says Cavendish Chair
Lisa Gordon, chair of investment bank Cavendish, has proposed that the UK government remove stamp duty from stock purchases and instead apply it to crypto transactions. The aim, she says, is to encourage younger Britons to invest in domestic equities rather than cryptocurrencies, which she described as “non-productive assets.”
“It should terrify all of us that over half of under-45s own crypto and no equities,” Gordon said in an interview with The Times on March 23. “I would love to see stamp duty cut on equities and applied to crypto.”
Current Tax Structure Disincentivizes Equity Investment
Currently, the UK imposes a 0.5% stamp duty on shares listed on the London Stock Exchange, generating about £3 billion in annual tax revenue. Gordon believes eliminating this tax would incentivize investment in British companies, potentially encouraging more firms to go public in the UK and supporting the broader economy.
By contrast, she argued that crypto “doesn’t feed back into the economy” and contributes little to employment or innovation. “Equities provide growth capital to companies that employ people, innovate and pay corporation tax. That is a social contract.”
Young People Turning to Crypto Over Stocks
Data from the Financial Conduct Authority (FCA) shows that 12% of UK adults — about 7 million people — now own cryptocurrency. A significant portion of those are under the age of 55. Gordon warned that younger people are saving rather than investing, which could pose long-term risks for their financial futures.
“People are shifting to saving rather than investing, and that’s not going to fund a viable retirement,” she said.
A 2022 FCA survey found that while 70% of adults had a savings account, only 38% held stocks directly or through tax-advantaged accounts. Among 18- to 24-year-olds, three out of four had no investments at all.
A follow-up survey showed that by early 2024, 44% of UK adults had reduced or stopped investing entirely due to the cost-of-living crisis. Nearly a quarter had withdrawn savings or sold investments to cover everyday expenses.
Reviving London’s Equity Market
Gordon is a member of the Capital Markets Industry Taskforce, which aims to reinvigorate the London equity market — an effort that aligns with Cavendish’s business interests in advising companies on IPOs.
According to a January report from consulting firm EY, only 18 companies listed on the London Stock Exchange in 2024 — one of its quietest years on record — while 88 companies delisted or moved to other markets citing concerns over liquidity and valuation.
Gordon Says UK Market Safer Than US
Despite concerns about the UK market, Gordon emphasized that it remains a “safe haven” compared to the US, which has suffered trillions in market value losses due to trade tensions and recession fears under the Trump administration.
Crypto markets have not been immune to recent volatility either. Bitcoin has fallen around 11% over the past month and has struggled to hold above the $85,000 level. However, it is currently trading slightly higher at around $85,640.
Conclusion
Gordon’s proposal reflects growing concern among financial leaders that the UK is losing its edge in capital formation and stock market activity. By removing stamp duty from equities and applying taxes to crypto instead, she hopes to redirect retail interest toward traditional markets — ultimately fostering long-term economic growth.
Whether the government adopts such a policy remains to be seen, but the debate underscores the widening gap between traditional finance and the growing influence of digital assets.
