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Osborne: EU transaction tax ‘may not see the light of day’


Chancellor George Osborne has cast doubt on whether EU plans to implement a financial transaction tax will go ahead.

Speaking at the Treasury committee today, Osborne was quizzed by Conservative MP Jacob Rees-Mogg on whether the Government’s plans for a renegotiated relationship with Europe would see the UK required to collect tax on financial transactions taking place through London.

Currently, the UK will not join the plans for a FTT, but Rees-Mogg argued the attractiveness of London as an international financial centre could still be hit by a requirement to collect tax on behalf of members who are participating.

However, Osborne said: “To be honest, there’s not actually much of a proposal on the table at the moment. Although I’ve sat through interminable meetings about whether they are going to introduce one, it doesn’t seem to be seeing the light of day.

“Maybe good sense is prevailing on the councils of Europe.”

In September, EU economics commissioner Pierre Moscovici described a deal on the FTT as “within reach”.

Originally planned for implementation in 2014, finance ministers from Germany, France, Italy, Austria, Belgium, Estonia, Greece, Portugal, Slovakia, Slovenia and Spain now hope to have a transaction tax in place by 2017.



NAPF says 11-member FTT will cost UK schemes £1bn a year

The proposed European Financial Transaction Tax would cost UK pension scheme members £1bn a year, according to estimates from the National Association of Pension Funds. Speaking at the Money Marketing Retirement Planning Summit in Cork last week, NAPF EU policy lead James Walsh warned the FTT would have a dramatic effect on British savers despite […]


Labour under fire over financial transaction tax plans

Labour’s plans for a financial transaction tax have come under fire amid concerns the policy will “damage growth”. Speaking at the Labour party conference in Brighton yesterday, CityUK director of policy and public affairs Nicky Edwards said the policy will fail to achieve the stated goals. Labour leader Jeremy Corbyn has already backed the introduction […]


Labour leader Corbyn backs financial transaction tax

Newly elected Labour leader has lent his support to plans to implement a European financial transaction tax. Under the FTT proposals first put forward by the European Commission in 2011, a 0.1 per cent tax would apply to share and bond trades, while a 0.01 per cent levy would hit derivative transactions between financial institutions […]


EU members revive financial transaction tax reforms

Plans to introduce a financial transaction tax have been revived after 10 EU member states reaffirmed their commitment to introducing the levy by January 2016. In September 2011, the European Commission published proposals for an EU-wide FTT. Within a year it became clear there was not sufficient agreement among member states to introduce the tax. […]

Value remains within European equities

By Rob Burnett, Neptune European Opportunities Fund

In recent months, investors have become more pessimistic about both the European and the US economic outlook and yet stockmarkets have pushed on to new highs. Some would argue that this is a worrying divergence. We would take the opposite view. This appears to be classic bull market behaviour. A wall of worry has been rebuilt, and stockmarket resilience should be taken as a sign of strength. The market is discounting an improving economic outlook ahead, particularly in the south of Europe.


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