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UK Should Tax Crypto To Boost Economy, Says Cavendish Bank Chair

The Cavendish Bank Chair states that the UK should implement crypto taxation to redirect investments to local stocks and boost the economy.
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UK Should Tax Crypto To Boost Economy, Says Cavendish Bank Chair

Highlights

  • Cavendish Bank Chair advocates for crypto taxation to boost UK's economy.
  • The Chair calls crypto a non-productive asset that does not contribute to economy growth.
  • Gordon believes that redirecting investments to local exchanges could boost economy.

Cavendish Investment Bank chair Lisa Gordon advocates for imposing taxes on UK crypto purchases in a bid to boost the country’s economy. Gordon finds it alarming that over half of the country’s young citizens own crypto, but not equities. By implementing crypto taxation in the UK, Gordon intends to redirect investments into local stocks, fostering economic growth.

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UK To Implement Tax on Crypto: Insights

According to The Times report, investment bank Cavendish Chair Lisa Gordon underscored the crypto taxation significance in the UK. Gordon posited that the UK should implement crypto taxation to redirect Britons to invest in local stocks, thereby bolstering the country’s economic growth.

Commenting on the country’s massive crypto investments, Gordon stated:

It should terrify all of us that over half of under-45s own crypto and no equities. I would love to see stamp duty cut on equities and applied to crypto.

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How To Redirect Investments Into Stocks?

Notably, the Cavendish bank chair believes that a significant reduction in the 0.5% on shares listed on the London Stock Exchange could encourage investments in local stocks. This could encourage people to invest in local companies, fostering economic growth and job opportunities. The UK crypto taxation and the reduced stock tax could boost the economic growth, stated Gordon.

Currently, the UK tax revenue generates around 3 billion British pounds ($3.9 billion) annually. If this tax is reduced, it could sway people to invest their savings in local companies.

Meanwhile, Gordan views cryptocurrencies as a “non-productive asset” that doesn’t contribute to the economy’s growth. In contrast, equities provide growth capital to companies that employ people, innovate, and pay corporation tax. According to her, this is a social contract that should be advocated for.

Interestingly, Gordon’s criticism contradicts other countries like the US, South Korea, and El Salvador’s increasing efforts to foster crypto growth. Recently, US President Donald Trump signed an executive order to establish a strategic Bitcoin reserve.

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UK Stock Market Faces Challenges

Significantly, consulting giant EY reported that the London stock market saw one of the slowest years. Reportedly, only 18 companies were listed on the London stock market last year, marking a significant decline from 23 in 2023.

At the same time, 88 companies were delisted or transferred from the exchange. Despite these unfavorable conditions, Gordon remains optimistic about the UK’s stock market growth. She describes the UK as a “safe haven” for the stock market compared to the volatile US market.

Gordon’s statements come amidst the US’ diverse approach to crypto taxation. In contrast to Gordon’s idea of the UK crypto taxation, the US is currently discussing the possibilities of zero crypto tax.

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Nynu V Jamal

Nynu V Jamal is a Senior Journalist at CoinGape. She boasts more than 3 years of experience in content writing, with expertise in crypto and blockchain. She has contributed to platforms like CoinEdition and CryptoTale, demonstrating her proficiency in navigating the dynamic crypto landscape. Beyond her journalistic pursuits, Nynu is a literary enthusiast, having served as an Assistant Professor of English Language and Literature. She is a Master's degree holder in English Literature and a UGC NET qualifier. Her academic background has enabled her to publish research papers on literature, while also nurturing her creative side as a published poet. Her creative side extends to music, crafts, and art, which she actively explores. Her unique blend of analytical and creative skills allows her to craft engaging stories that captivate audiences. Stay updated with Nynu on LinkedIn

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