Reeves Must Confront Reality: UK's Flawed Stamp Duty System Exposed by AstraZeneca's Global Listing
The recent decision by AstraZeneca to list its shares on the New York Stock Exchange while maintaining quotes in London and Stockholm has exposed the deep flaws in the UK's stamp duty regime. The move, which was approved by 99% of shareholders, has left HM Treasury out of pocket by around £200 million per year.
The US investor-friendly structure of AstraZeneca's listing highlights the UK's outdated tax system, which imposes a high rate of 0.5% on shares traded in the country. This rate is significantly higher than other developed economies, including Ireland, which has a rate of 1%. The UK's stamp duty reserve tax only affects retail investors and pension funds, while other investors have found workarounds to avoid paying the levy.
The proposal by AstraZeneca's CEO Pascal Soriot that it should be "a global listing for global investors in a global company" is a telling comment on the UK's stamp duty system. The fact that the majority of shareholders voted in favour of the move suggests that the current regime is no longer fit for purpose.
The chancellor, Rachel Reeves, has a clear choice to make. Rather than attempting to tweak the system through minor adjustments, she should consider outright abolition or significant reduction of the stamp duty rate. This would help to boost trading activity and make the UK's shares more competitive on the global market.
Reeves' office is reportedly considering measures such as capping annual cash Isa contributions in an effort to encourage investors into shares. However, this approach is too little, too late. The real challenge is tackling the root causes of the stamp duty system, which has become a barrier to entry for many potential investors.
The timing may not be ideal, but it's time for Reeves to confront reality and reform the UK's stamp duty regime. The clock is ticking, as the receipts from this outdated tax are set to leak away unless action is taken.
The recent decision by AstraZeneca to list its shares on the New York Stock Exchange while maintaining quotes in London and Stockholm has exposed the deep flaws in the UK's stamp duty regime. The move, which was approved by 99% of shareholders, has left HM Treasury out of pocket by around £200 million per year.
The US investor-friendly structure of AstraZeneca's listing highlights the UK's outdated tax system, which imposes a high rate of 0.5% on shares traded in the country. This rate is significantly higher than other developed economies, including Ireland, which has a rate of 1%. The UK's stamp duty reserve tax only affects retail investors and pension funds, while other investors have found workarounds to avoid paying the levy.
The proposal by AstraZeneca's CEO Pascal Soriot that it should be "a global listing for global investors in a global company" is a telling comment on the UK's stamp duty system. The fact that the majority of shareholders voted in favour of the move suggests that the current regime is no longer fit for purpose.
The chancellor, Rachel Reeves, has a clear choice to make. Rather than attempting to tweak the system through minor adjustments, she should consider outright abolition or significant reduction of the stamp duty rate. This would help to boost trading activity and make the UK's shares more competitive on the global market.
Reeves' office is reportedly considering measures such as capping annual cash Isa contributions in an effort to encourage investors into shares. However, this approach is too little, too late. The real challenge is tackling the root causes of the stamp duty system, which has become a barrier to entry for many potential investors.
The timing may not be ideal, but it's time for Reeves to confront reality and reform the UK's stamp duty regime. The clock is ticking, as the receipts from this outdated tax are set to leak away unless action is taken.
. Its clear theyre not doing enough to encourage people to invest in shares and its hurting the UK economy. I mean, AstraZeneca can just list their shares on another exchange and HM Treasury is left out of pocket by like £200 million a year... thats not good for anyone! 
The goverment should really consider reducing the stamp duty rate or even abolishing it altogether if its causing problems like this. Its all about making the UK shares more competitive on the global market and I think they should be brave enough to make some changes 
It's like they're trying to scare off international investors and favor the domestic ones instead. AstraZeneca's move shows that this just isn't working anymore. And yeah, capping cash Isa contributions won't cut it - we need a major overhaul of the system ASAP! 
i mean, chancellor Reeves needs to step up and fix this ASAP, but capping cash Isa contributions? 
that's just a Band-Aid on a bullet wound. they need to scrap the system altogether and make it more investor-friendly. 
, it's like they're trying to scare off investors instead of attracting them 
, i mean what other country has a 0.5% rate that's higher than everyone else?! 
We need someone who's willing to take a stand and make some real changes instead of playing it safe all the time. Come on Rachel Reeves, what's it gonna be? Are you gonna stand up for the people or just let this outdated system continue to bleed us dry? 
rachel reeves needs 2 step up her game & give us a break from dat 0.5% tax rate 
it's like they wanna hold back the progress of british business 
we need change now not some minor tweak 
And let's be real, if other developed economies are already doing it, why can't we? 
It's time to get with the times and make our tax system more investor-friendly 
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. We need a full-on overhaul here! A 1% rate is still way too high for an economy as big and developed as ours 
