UK Should Tax Crypto To Encourage Local Stock Investment, Says Cavendish Chair

Lisa Gordon, chair of investment bank Cavendish and a member of the Capital Markets Industry Taskforce, has called for the UK to introduce a tax on cryptocurrency purchases while simultaneously cutting taxes on equities.

The aim, she argues, is to encourage younger Britons to invest in local stocks and help boost the country’s sluggish capital markets.

“It should terrify all of us that over half of under-45s own crypto and no equities,” Gordon told The Times in a report published March 23. “I would love to see stamp duty cut on equities and applied to crypto.”

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UK Share Stamp Duty Brings In £3 Billion Annually From London Stock Exchange Trades

Currently, UK investors pay a 0.5% stamp duty on shares listed on the London Stock Exchange—raising about £3 billion ($3.9 billion) in tax revenue annually.

Gordon believes reducing this tax could incentivize more people to invest in domestic companies, potentially triggering a wave of new public listings and invigorating the UK economy.

In contrast, she described cryptocurrencies as “non-productive assets” that do not contribute to economic growth.

“Equities provide growth capital to companies that employ people, innovate and pay corporation tax. That is a social contract. We shouldn’t be afraid of advocating for that,” Gordon said.

Data from the Financial Conduct Authority (FCA) in late 2023 showed that around 12% of UK adults—approximately 7 million people—owned crypto assets. Most of these owners were under the age of 55, with younger demographics particularly underrepresented in stock ownership.

CRYPTO TAX 2025!

Now I need to clarify confusion around Crypto included in Undisclosed Income & Tax at 70% being charged. (Which is not even correct number )

People will mislead, misguide and scare crypto investors…

how will the industry grow??! pic.twitter.com/InKgk2HPyp

— CA Sonu Jain (Crypto Tax Expert) (@TheWeb3CA) February 2, 2025

Gordon warned that younger people were prioritizing saving over investing, a trend she believes won’t support long-term financial stability.

Despite favorable tax rules—allowing individuals to invest up to £20,000 annually without paying taxes—only 38% of adults hold shares directly or via accounts, while 70% keep money in savings.

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Cost of Living Crisis Forces 44% of UK Adults to Cut Back on Saving and Investing

A follow-up FCA survey revealed the toll of the cost of living crisis, with 44% of adults reducing or halting savings and investments, and nearly a quarter dipping into their savings or selling assets to cover expenses.

Meanwhile, London’s stock exchange is facing its own challenges. A January report from EY noted only 18 new listings in 2023, compared to 23 in the previous year.

Furthermore, 88 companies delisted or moved markets, citing low liquidity and more favorable valuations abroad.

Gordon, however, maintains that the UK remains a “safe haven” relative to other global markets. She contrasted the UK’s stability with volatility in the U.S., which she attributed to political uncertainty and economic headwinds—issues that have also impacted the crypto market.

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