The Association of Investment Companies (AIC) has intensified its campaign for the abolition of the UK's 0.5% stamp duty on share transactions, warning that the tax is actively driving foreign capital away from London.
The industry body argues that the levy undermines the city's competitiveness against rival financial hubs that do not impose such transaction costs, threatening the long-term viability of the UK's equity market.
The call to action is directed at incoming Prime Minister Andy Burnham, with the AIC framing the removal of the duty as a critical test of his pro-business credentials.
Industry leaders contend that the tax creates a structural disadvantage for London-based funds, particularly in an environment where global investors are increasingly sensitive to transaction costs and regulatory friction.
The argument suggests that without reform, London risks ceding market share to jurisdictions offering more favorable trading conditions.
This development adds to a growing chorus of criticism from the financial sector regarding the UK's tax regime on financial transactions.