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PBR: Apcims calls for stamp duty relief

The Association of Private Client Investment Managers and Stockbrokers has welcomed the Government’s emergency measures to boost the economy, but is critical of the lack of stamp duty relief.

The trade body says that reducing stamp duty on shares would help boost the UK’s competitive advantage and stimulate share trading.

Apcims CEO David Bennett says: “The stamp duty rate of 0.5 per cent in the UK is the largest of any G7 country and has not been reduced since 1986. France, Germany, Italy, The Netherlands and Luxembourg have abolished stamp duty. The US stamp duty rate is 0.0003 per cent.”

Bennett also labelled the income tax rise to 45 per cent for high rate tax payers a “populist move”.

He says: ““Increasing income tax on high rate tax payers is a populist move worth £1.2bn to the Treasury which is a drop in the ocean given we are talking about borrowing in the region of £120bn when implemented in 2011.

“Although it may be popular to raise tax on those earning over £150,000, this measure may impact share transactions which will affect the markets. Taking money away from those who would invest in the markets and UK businesses will may well take its toll. We want high skill, high paid individuals to continue to live in the UK and taxing high earners does not help.”

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