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Stock Exchange Transactions (Stamp Duty)

Volume 649: debated on Tuesday 21 November 1961

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11.

asked the Chancellor of the Exchequer whether he will consider legislation abolishing the 2 per cent. Stamp Duty on Stock Exchange transactions.

Will the Chancellor please re-examine this matter in the context of his forthcoming speculative gains tax? Does he know that foreign investors, who are traditional users of the London Stock Exchange and other facilities, are increasingly carrying out their transactions in overseas centres, where there is no such duty, to the exclusion of this country? Is it not a pity to keep on making sad noises about the country's loss of invisible exports while keeping in being discriminatory obstacles against the services we can offer?

I think that my hon. Friend would be wise not to expect a further reply. I have no doubt that my right hon. and learned Friend has listened to, and will take note of, the point made by my hon. Friend.

While no more optimistic of a reply from the hon. Gentleman, but noting that the Chancellor is listening to ideas, as we are told that he is anxious to tax short-term speculations, will he consider applying the Stamp Duty to transactions that take place during the period of the Stock Exchange account?

Will my hon. Friend bear in mind that when introducing measures to penalise investors it would be fair and reasonable to give some encouragement to the genuine investor by removing this tax?