Rachel Reeves slammed for 'bizarre tax' hurting millions of Brits

Rachel Reeves has been slammed for a bizarre taxation (Image: Getty)

The caller Lord Mayor of London, Alastair King, has launched a scathing critique of Rachel Reeves implicit a taxation connected concern successful UK shares, claiming it undermines British businesses and discourages growth.

At the bosom of the statement is the 0.5% stamp duty connected stock purchases, a levy forecast to rise £4.2bn for the Treasury successful 2024-25.

Critics reason the taxation puts British investors astatine a disadvantage, arsenic nary specified work exists erstwhile investing successful US-listed companies.

“There is nary stamp work successful narration to investing successful New York-listed assets,” Mr King told The Telegraph.

“So efficaciously you’re starting further down due to the fact that your costs of concern are increased.”

Critics reason the taxation puts British investors astatine a disadvantage (Image: Getty)

The City of London has faced mounting challenges, including a shrinking stock of planetary listings and high-profile exits similar microchip decorator Arm and concern elephantine Ashtead, which precocious announced plans to displacement its superior listing to the US.

Mr King urged the Chancellor to scrap oregon astatine slightest trim the stamp duty, emphasizing that adjacent a targeted cut, specified arsenic removing the taxation for smaller, high-risk businesses connected the AIM market, would outgo lone £650m and could importantly boost investment.

“Markets person moved on, and the regulatory situation has not kept pace,” helium said, informing of complacency and the erosion of the London Stock Exchange’s competitiveness.

Mr King besides criticised taxation breaks for ISAs, calling them “bizarre” for allowing tax-free savings successful currency oregon overseas shares, which helium argued subsidises American tech giants astatine the disbursal of UK businesses.

“Why are we giving taxation breaks for radical to support wealth successful cash? It’s bizarre,” helium said. “You springiness taxation breaks to radical who privation to instrumentality risks with their capital.”

Reeves has called for regulatory betterment to teardrop down barriers to growth, but Mr. King insists bolder steps are needed to reconstruct the City’s planetary standing.

“We request to get backmost into merchantability mode,” helium urged, advocating for proactive promotion of London’s fiscal markets to planetary investors.