Earlier this week the European Commission revealed its revised proposals for the previously heavily debated Financial Transaction Tax.
So far eleven countries including France, Belgium, Portugal, Spain and Germany have agreed to the introduction of the tax; and the latest revisions which were unveiled earlier this week have further strengthened the European Commission’s European Union wide proposal.
Although the proposals have been amended to take into account the fact that the tax will be implemented on a smaller geographical location; they revised proposals have maintained the approach of taxing all transactions with an established link to the Financial Transaction Tax; with a tax levy being set at 0.1 percent for shares and bonds; and at 0.01 percent for derivatives.
However, despite the revisions being made by the European Commission, which are now set to be discussed by member states, the UK government is still opposed to the tax, fearing that it will impact on London’s status as an economic hub.
Fears have also been expressed that the tax could cut UK savings and pensions by twenty percent as on-FTT countries will be face millions in extra costs when they deal with participating countries and their stocks and bonds wherever the trades take place.
In addition to the fears expressed by the UK government, the US have also raised concerns that the implementation of a Financial Transaction Tax will be harmful for international investors.
As an accountant in Bristol, Elaine Durrant specialises in offering tax advice, guidance and support to businesses and individuals.