Revealed: the unsavoury truth about the FTT

Author: Gemma Varriale | Published: 11 Apr 2013

KEY TAKEAWAYS

  • The effects of the proposed EU financial transaction tax could be far more damaging than many realise;
  • There are fears its impact will spread far beyond the 11 EU member states that have signed up to implement its provisions;
  • There are few exemptions on how the tax is levied, meaning a single client order will result in multiple points of taxation;
  • The tax threatens to close down the repo and money markets;
  • The UK is in a particularly bad situation, and could end up having to pay both sides of the tax, while keeping neither.

Although the European Commission’s (EC’s) Financial Transaction Tax (FTT)...