An inquiry into a banking transactions tax

Posted on July 12 2010

Here’s an amendment to the Finance Bill that should be discussed today (but sadly, you can be sure won’t be):

Inquiry into a banking transactions tax

Caroline Lucas

Mr Graham Allen

Richard Burden

Jonathan Edwards

Hywel Williams

Mr Elfyn Llwyd

NC2

To move the following Clause:—

‘(1)   

It shall be the duty of the Chancellor of the Exchequer to appoint a committee of inquiry to report within 6 months on the practical action necessary to introduce a banking transactions tax.

(2)   

For the purposes of subsection (1), a banking transactions tax is a tax, charged at the rate of 0.005 per cent of the value of the transaction, on

(a)   

foreign exchange dealings in sterling, and

(b)   

derivative, swap, bond and over the counter trading,
 

where the economic substance of the transaction arises in the United Kingdom or the place where the transaction is recorded is the United Kingdom.’

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1

One Response

  1. JamesD says:
    July 12 2010 at 6:03 pm

    I already get gouged on forex transactions. This would make it even worse. Why should I have to pay tax on account of the banks AGAIN?

    Wouldn’t it be better to charge them a wealth tax based on their capital? (Although they surely would find a way to stick me with the bill).