The UK should consider taxing cryptocurrency purchases while cutting taxes on stock investments to encourage economic growth, according to Lisa Gordon, chair of investment bank Cavendish.
Shift Taxes to Crypto, Not Stocks
Gordon believes the current 0.5% stamp duty on London Stock Exchange shares discourages equity investment, especially among younger Britons. Instead, she suggests applying that tax to crypto purchases.
“It should terrify all of us that over half of under-45s own crypto and no equities,” Gordon said in a March 23 interview with The Times. “I would love to see stamp duty cut on equities and applied to crypto.”
Stamp duty on UK shares currently brings in about £3 billion ($3.9 billion) annually. Gordon argues that reducing this tax could encourage more people to invest in local companies. This, in turn, might inspire more firms to go public in the UK, fueling broader economic growth.
Equities vs. Crypto: A Productive Choice
Gordon described crypto as a “non-productive asset” that doesn’t contribute to the economy in a meaningful way.
“Equities provide growth capital to companies that employ people, innovate, and pay corporation tax,” she said. “That is a social contract. We shouldn’t be afraid of advocating for that.”
UK regulators have noted rising crypto ownership. As of November, around 12% of UK adults—about 7 million people—held crypto, with 36% of those under age 55.
However, Gordon warns that many individuals have moved from investing to merely saving. “That is not going to fund a viable retirement,” she said.
Market Challenges and the Push for Revival
A 2022 survey by the Financial Conduct Authority (FCA) showed that while 70% of adults had savings accounts, only 38% held shares directly or through tax-advantaged accounts. Nearly three in four people aged 18–24 had no investments at all.
The situation has worsened amid a cost-of-living crisis. In the year leading up to January 2024, 44% of UK adults either reduced or stopped saving and investing. Nearly one in four had to dip into savings or sell investments to meet daily expenses.
Gordon, a member of the Capital Markets Industry Taskforce, supports efforts to revitalize the local market. Cavendish would benefit directly, as it advises companies exploring public listings.
According to a January report by EY, the London stock market saw only 18 companies list in 2024, down from 23 the year before. Meanwhile, 88 companies either delisted or switched markets, often citing poor liquidity and lower valuations compared to the U.S.
Despite this, Gordon insists the UK remains a “safe haven” compared to U.S. markets, which have experienced significant volatility due to tariff threats and recession fears.
Crypto markets have not been immune to downturns either. Bitcoin has dropped 11% over the past month, although it has risen 2% in the last 24 hours, currently trading around $85,640.
