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The big bad financial transaction tax?

Lobbyists against an international financial transactions (FTT) argue it could impact banks, investors and the economy.

It is due to come into effect from January 1, 2014, and plans drawn up by the European Commission aim to raise £29.7bn from tax on stocks, bonds, derivatives, and securities lending - it would put a levy on all euro transactions, anywhere in the world.

George Bull, senior tax partner at Baker Tilly, suggests it is time that the “inevitable interconnectedness” of tax systems in a global economy is recognised, and points to the likes of Stamp Duty Reserve Tax as an example of this.

Owen Tudor of the Robin Hood Tax campaign, said it was “breathtakingly hypocritical” of Osborne to launch a European court of justice challenge to the tax, given that stamp duty on shares is collected wherever UK shares are traded, and regardless of who is trading them.

The CBI have argued it would harm growth, jobs and investment. Will all costs be passed on? Let me know what you think in the comments below.

This was posted in Bdaily's Members' News section by Tom Keighley .