Prime Minister Jeremy Hunt has hinted at plans to launch a tax-free ‘British Isa’ to invest in shares in British companies in the Spring Budget as part of efforts to boost the country’s stock market.
UK Shares Isas allow investors to buy a set amount of shares in UK companies without paying tax. Currently, the government imposes a 0.5% tax on shares purchased in the UK, known as share purchase stamp duty.
It comes as Mr Hunt looks to find a low-cost announcement to help win support from voters and businesses ahead of the long-awaited general election, with the Conservatives trailing far behind Labor in opinion polls. It was done during the.
Some had expected the incentive would be announced by Mr Hunt as part of his autumn statement last November, but it was expected that Mr Hunt would announce it as part of his Autumn Statement last November, but he announced that NatWest shares – still 38.6% government-owned since the 2008 taxpayer bailout – would be announced privately later this year. It could also complement government plans to sell it to investors.
Mr Hunt made the comments in front of hundreds of city leaders gathered at Westminster’s Raffles Hotel for the annual dinner hosted by financial services lobby group TheCityUK.
When asked if he would consider a UK Isa, he replied: “Yes. And that’s one of them. ”
“Do I want to do something that means more British capital is invested in the most promising companies? Absolutely. I think someone like Isa, who is British, would be good at that.”
This comes as the city faces increasing threats from competing financial hubs such as New York, Paris, Frankfurt and Amsterdam, especially after Brexit. London’s stock market has seen an exodus of companies seeking capital outside the UK, with Paddy Power, Betfair and FanDuel owner Flutter Entertainment last week moving its main listing to New York “as soon as possible”. He said he is considering moving.
But Mr Hunt stopped short of suggesting he was prepared to cut the 0.5% stamp duty on direct purchases of shares, which some city campaigners say is a major hurdle for local investors. claims.
Both the UK Shares Isa and the scrapping of stock stamp duty have been lobbied by city groups including industry body UK Finance.
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UK Treasury Spring Budget Submission; Released earlier this week, said, “While the reforms in the Autumn 2023 Statement to Evolve the Isa Administration were welcomed, the authorities need to work with providers to ensure these changes are properly implemented.” The Government should consider introducing a ‘UK ISA’ focused on UK domestic shares to provide an easily accessible and reliable means to encourage individuals to invest in UK shares. ”
Mr Hunt also reiterated his ambition to make the UK the next Silicon Valley, bringing about growth similar to the big bang changes in city regulations that some believe sparked Britain’s financial services boom.
This will also extend to promoting technology-focused stock market listings. “We want the London Stock Exchange to become Europe’s Nasdaq,” he said.
