Lisa Gordon Calls for UK Tax Shift: Crypto Tax for Stock Boost

Jimmy Aki
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Cavendish Bank chair Lisa Gordon has proposed an overhaul of Britain’s levies on monetary instruments. She suggests eliminating the current fee on traditional stock transactions while introducing a new charge on cryptocurrency acquisitions.

Citing a generational trend towards virtual money over company stakes, she warned that younger savers’ focus on the former could hinder economic progress.

UK Tax Overhaul: Equity Relief and Crypto Levy Proposed

In an exclusive interview with The Times, Lisa Gordon suggested restructuring the UK’s taxation system on financial assets.

Gordon argues that the current approach, which levies a 0.5% stamp duty on stocks listed on the London Stock Exchange, should be reversed. Stocks would become tax-exempt, while crypto purchases would face a new levy.

In her view, shares deliver tangible benefits by channeling growth capital into companies, supporting job creation, and generating corporation tax revenues—forming a vital social contract that bolsters the economy.

In contrast, crypto investments fail to provide such direct economic contributions, although digital assets continue to gain traction.

A November FCA report noted that around 12% of adults in the UK now own cryptocurrencies, with 36% of these being investors under 55.

This finding supports Gordon’s claim that over half of those under 45 hold digital currencies, even though this group currently shows limited engagement with traditional stocks.

This behavioral shift raises concerns about the long-term impact on the economy as fewer investments flow into productive equity markets.

Currently, a duty on stock trades brings in around 3 billion British pounds annually, yet this revenue model appears increasingly out of sync with economic priorities.

The Cavendish chief believes that taxing the crypto sector would capture additional income and incentivize investors to allocate more funds to shares.

A 2022 FCA survey revealed that although most adults maintain savings accounts, fewer are actively investing in equities.

Gordon warned that a focus on crypto—deemed “non-productive” by her—might leave many unprepared for retirement, as these assets fail to deliver the same economic benefits as traditional share investments.

Gen Z and the Digital Investment Shift

The younger generation continues to drive a significant shift in how digital assets are perceived and invested.

In a recent Gemini study on the Global State of Crypto, over half of Gen Z investors in countries like the U.S., UK, France, Singapore, and Turkey have owned or currently own cryptocurrency, a rate much higher than the 35% observed in the general population.

This tech-savvy generation favors digital currencies for their innovative edge and views them as a strategic tool to hedge against inflation.

For instance, in the U.K., a notably higher percentage of young crypto owners—42%—rely on digital assets to mitigate rising living costs compared to the broader population.

Gen Z’s significant allocation to digital assets reflects confidence in crypto’s self-regulation, contrasting with the broader public’s call for stricter Government oversight and more detailed planning before making cautious entries.

Their proactive stance is poised to drive further adoption and innovation in digital finance, potentially reshaping traditional investments.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.