This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM+Cover+small+181214
Categories:Regulation

AS 2011: EU financial transaction tax rejected

  • Print
  • Comment

Chancellor George Osborne has warned that a financial transaction tax would hit individual savers rather than the banks.

In his autumn statement speech, Osborne said rejecting the tax is important to ensure the UK remains at the centre of the world’s financial system.

He said: “That is why we will not agree to the introduction of an EU financial transaction tax. It is not a tax on bankers, it is a tax on people’s pensions.”

In September, the European Commission proposed imposing a tax of 0.1 per cent on the buying and selling of bonds and shares and a tax of 0.01 per cent on the buying and selling of derivatives.

Critics have said companies will relocate to avoid the FTT and that pension savers or other mutual fund investors would bear the brunt of the tax.

Investment Management Association head of tax Jorge Morley-Smith, says: “We are glad the Chancellor has recognised the FTT will not affect the financial institutions that contributed to the crisis but will reduce the savings of ordinary taxpayers.”

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Money Marketing Awards 2015
Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Have your sayEdit my profile/screen name

You must sign in to make a comment

AXA Wealth

Is there a growing need for financial advice


Fund Data

Editor's Pick



Poll

Will providers be forced to pay out compensation over annuity misselling?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments