Labour urged to scrap stamp duty on share trading to turn UK 'from nation of savers into nation of investors'

See more This is Money on Google - save us as a Preferred Source Updated: 02:00 EDT, 14 September 2026 John Healey has been urged to slash the cost of investing in UK companies to ‘to drive growth and support wealth creation’.As the Chancellor plots his first Budget since taking over at the Treasury, the Association of Investment Companies called for stamp duty on share trading to be axed.And it pleaded with Healey to reverse Rachel Reeves’ tax raid on investors who back start-ups.‘Decisive action is needed to unlock growth,’ said AIC chief executive Richard Stone.‘The UK needs more investment if it is to deliver the Chancellor’s ambitions for greater productivity and economic growth.‘Growth will be accelerated by the creation of an investment culture in the UK – turning the country from a nation of savers to a nation of investors. Our proposals support that ambition and they must not be undermined by other measures which tax or disincentivise wealth creation.’ Chancellor John Healey has been urged to reverse the damage done by predecessor Rachel ReevesThe comments follow warnings that the London stock market has become a ‘hunting ground’ for foreign predators looking to buy up undervalued British companies on the cheap.Some £80billion of takeover deals have been struck so far this year with Easyjet, Schroders, Beazley, Segro, Tate & Lyle and the owner of William Hill among those targeted.At the same time, a shortage of new listings through so-called initial public offerings (IPOs) means those companies that are being taken off the stock market in the takeover frenzy are not being replaced.In his first major speech as Chancellor, Healey last week insisted he wanted the UK to be a ‘country of wealth creation’.But the comments were overshadowed by 4,000 job cuts at Jaguar Land Rover and the departure of one of Britain’s top taxpayers.Hedge fund tycoon Chris Rokos – who paid £330million in tax last year – became the latest billionaire to quit Britain by moving to Greece ahead of possible further tax hikes in next month’s Budget.The AIC is now urging Healey to take some ‘practical measures’ to turn the tide and boost investment in UK companies – including axing stamp duty on share trading.Investors currently pay a 0.5 per cent levy when trading UK-listed shares – but nothing at all if they buy US stocks.So a saver who buys £10,000 of shares in Rolls-Royce or Marks & Spencer pays £50 tax – but nothing on shares in SpaceX.‘The Chancellor should start by setting out a plan to remove stamp duty by the end of this parliament,’ said Stone.‘Stamp duty is a tax on people investing in the UK. It makes London’s stock market less attractive to both companies and investors.‘Scrapping it would bring in more private capital, benefitting the economy and the UK’s public finances – and sending a strong message that the country is open for business.’The AIC also called on Healey to reverse his predecessor’s decision to cut tax relief on venture capital trusts that back start-ups from 30 per cent to 20 per cent.‘We need to make sure we are supporting our most ambitious companies,’ said Stone.‘Venture capital trusts play a vital role in helping companies scale up while remaining in the UK, contributing to the domestic economy.‘The cut to VCT tax relief from 30 per cent to 20 per cent in the last Budget made the scheme less attractive and will result in lower funding for the companies with the highest potential. The Chancellor should use his Budget to restore VCT tax relief to its previous level.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you