AIMA

Financial Transaction Tax

In September 2011, the European Commission issued a Proposal for a Directive which contains a Financial Transaction Tax (FTT) at 0.1% for transactions in bonds and equities, and 0.01% for derivatives transactions (on notional value), with effect from January 2014.

The proposed FTT has a wide scope and captures a broad range of financial transactions where at least one party is established in an EU Member State and either that party or another is a financial institution. Financial transactions include the purchase and sale of any ‘financial instrument’ (shares, bonds, notes, units and including repos and stock lending) and concluding or modifying derivatives.   

Key legislative documents

European Commission proposal for a Regulation on the methods and procedure for making available the own resource based on the financial transaction tax (November 2011)

European Commission Proposal for a Directive on a common system of financial transaction tax (September 2011)

Consultation documents

House of Lords' Call for Evidence: towards a financial transactions tax? (October 2011)

European Commission Consultation on financial sector taxation (February 2011)

AIMA documents

Research - Assessing the competitiveness of the European Commission's proposed Financial Transaction Tax (January 2012)

Response to House of Lords' Call for Evidence: towards a financial transactions tax? (November 2011) 

Response to European Commission's consultation on financial sector taxation (April 2011)

Other relevant documents

European Commission website on financial sector taxation

European Commission Impact Assessment - Executive Summary and Full Report (September 2011)

Budget for Europe Part I and Part II (June 2011)

All written submissions to House of Lords