22nd April 2009
'Budget - a wasted opportunity' - says APCIMS
Commenting on today’s budget David Bennett Chief Executive of the Association of Private Client Investment Managers and Stockbrokers (APCIMS) said:
“Today’s budget was an opportunity to boost financial markets and private investment as well as boosting the Government’s tax take through the reduction of Stamp Duty/SDRT, but the Chancellor failed to show the leadership to take this tough decision.
“With over 12 million people dependent on stocks and shares and other financial instruments for their financial futures, it is vital to protect the interests of investors and the investment industry in the UK. The Chancellor has done nothing to help this vital element of the economy.”
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For more information please contact:
Dirk Paterson, Head of Communications, APCIMS
on
Office:
020 7448 7100
Mobile: 07944 866 286
Email: dirkp@apcims.co.uk
Notes to editors:
In their budget submission APCIMS called on the Government to:
- Reduce stamp duty to 0.25% in order to boost savings, increase HM revenue, maintain the UK’s competitive advantage and increase trading and liquidity.
- Maintain and develop London as a global financial centre through a benign tax system which encourages growth.
- Plan sufficient time ahead of tax changes for there to be appropriate preparation and consultation prior to implementation.
- Move the base date for computation of Capital Gains Tax.
Stamp Duty/SDRT
A study by Oxera, “Stamp duty: its impact and the benefits of its abolition”, was commissioned by the Association of British Insurers (ABI), the City of London Corporation, the Investment Management Association (IMA) and the London Stock Exchange in May 2007 .
The report concluded that despite generating revenue of around £3 billion per annum for the Government, the research concludes that the abolition of stamp duty could bring substantial benefits, including:
- A long-run permanent rise in UK GDP of between 0.24 per cent and 0.78 per cent, with an increase in the government tax-take of up to £4 billion (minus lost direct receipts of £2.9 billion);
- A one-off increase in equity valuations – potentially of 7.2 per cent– and could see fixed annual investment by FTSE 350 companies rise up to £6.4 billion; and
- A reduction in UK companies’ cost of equity capital by 7-8.5 per cent, increasing to as much as 10-12 per cent in the case of technology companies and 9-11 per cent in the case of retail companies.
APCIMS
- More than 12 million people in the UK currently invest directly in stocks and shares and other financial instruments to secure their financial futures
- APCIMS represents over 140 firms all over the UK who deal primarily in stocks and shares on behalf of individuals and the institutions in which we have our money
- Around £400 billion of the country’s wealth is under the management of our members
- Our aim is to ensure that the regulatory, tax and other changes across Europe minimize impact on the investment community
- We want to lead the debate on regulation in Europe, with UK regulators and with British parliamentarians to make sure consumers are protected while at the same time our industry flourishes in the UK.