Well, when it’s ruled so by a relevant body.
The EU did that to the UK yesterday. Mark Lee offers a thoughtful analysis here.
So, the UK has made a mistake. And it could cost £20bn — a 10% increase in the deficit — 20% of the cost of the NHS for a year.
To enrich banks.
I think some counter-measure is needed in the public interest. And I know the libertarians will scream and shout. And my answer is that the EU also has a concept of ‘unjust enrichment’. I think that should apply here.
For more than 20 years stamp duty reserve tax has been paid: few objected — and why should they when the charge is eminently reasonable? But HSBC has now. And the UK government has been found to have made an error.
At the very least a time limit for past claims has to be imposed. I really can’t see a significant tax increase to pay tax refunds to banks is going to go down well with any politician right now.
But let’s also go the heart of this: the EU dedication to the free movement of capital is at fault here. Why should there be that right when people do not share it, universally?
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[…] offer a post of his from today in its entirety. When is a tax […]
That’s the EU for you. Pity the Irish didn’t have the guts to say NO. And NO again, each time the politicos asked for a YES. The EU provides a forum where only the rich and powerful can exert effective influence.
In the remote event that the British government were to introduce a tax on the rental value of land, the Duke of Pestminster and his pals would no doubt appeal to the European court that their human rights were being infringed upon, and the tax would be ruled unjust, and overturned.
Henry
Broadly speaking that’s not the direction of EU tax policy these days
It was
The Halifax case changed that
Richard