The Association of Private Client Investment Managers and Stockbrokers is leading an online petition for the abolition of stamp duty on share transactions.
The association is lobbying Chancellor Gordon Brown to ditch the tax ahead of the March budget.
Apcims claims the arrival of a European free trade alliance on cross border selling in November will force UK companies to list on other European stock exchanges in order to avoid stamp duty on their shares.
Apcims head of information Brian Mairs says: “If companies decide to merge they face a massive stamp duty bill in the UK, but nothing in Frankfurt, for example. Also stamp duty is unfair to investors. Someone buying a 'tax-free' £7000 Isa will pay the Exchequer £35.”