Susannah Streeter, head of markets at investment platform Hargreaves Lansdown, described the policy as “illogical” as stamp duty is paid on UK shares but not for overseas shares. She called on the next government to lift the Isa allowance instead.
Ms Streeter said: “Around 80pc of shares held in Hargreaves Lansdown Isa is already in UK companies and so the easiest way to promote further investment would be by simply lifting the Isa allowance, without creating a new product and greater complexity.
“At the same time stamp duty on UK shares is still paid within an Isa but not for overseas shares and levelling this playing field would boost UK equities further. It’s unreasonable and illogical for investors buying UK shares to have to pay stamp duty when overseas share trades are stamp duty-free.
“Alternatively, providing dividend or capital gains tax benefits for investing in UK stocks outside…
