Sat. Jan 22nd, 2022

To avoid the “Jurassic Park” label you warned about in your editorial “How to revive London’s flagship stock market” (FT View, FT Weekend, 8 January), the London markets require action from investors, regulators and the government.

US scholarships do not charge stamp duties. In the UK, most private investors risk a capital gains tax of 18 to 28 per cent (CGT). With no stamp duty and a lower CGT (say less than 5 percent), private investors can trade more efficiently and attach much more value to growth rather than dividends.

This will benefit the start-up and technology sectors. Taxes lost at the higher rate of CGT are likely to be offset by a larger volume of CGT at a lower level due to more frequent trading.

An illustration of the lack of high-tech companies in the London market is contained in the recent history of Arm Holdings, which was bought by SoftBank a few years ago and is now being traded again. It was treated as a pawn in a financial game rather than a serious part of the UK economy.

And since the majority of UK shares are owned by funds, the bonuses that executives and executives earn mean by accepting that there is little resistance to such offers, while the government hides behind a cloak of invisibility.

The British press reported this month that British citizens had saved £ 1.7tn during the pandemic; the UK stock market is valued at around £ 3.8tn.

If savers are encouraged to divert some of this cash to the stock market, many of the current problems can be overcome.

The result can help to level. Wealth would be distributed more evenly.

Derek Coggrave
London N3, United Kingdom

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