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Eversheds comment: Financial transaction taxes best levied on a global basis

Eversheds comment: Financial transaction taxes best levied on a global basis

  • United Kingdom

    28-09-2015

    Commenting on news that shadow UK chancellor, John McDonnell is to push for a "Robin Hood tax" on stock market trading, Ben Jones, partner and tax expert at law firm Eversheds, says:

    “A “Robin Hood tax” in the form of the Financial Transaction Tax (FTT) has been a European proposal for a number of years now. To date, both the previous Coalition Government and the Labour Opposition have rejected a Europe-only tax of this nature. The fundamental objection is based upon the global nature of the transactions and institutions that the FTT seeks to target and the likely disproportionate impact this tax could have on the financial sector in the UK.

    "If an FTT is levied only on a European basis (or even a purely domestic basis) rather than on a global basis, the concern is that institutions and transactions would move away from the City to other global financial centres such as New York, damaging this vital part of the UK economy. Any review of an FTT for the UK should carefully consider this risk and any potential damage to the UK economy its introduction might cause.”

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