Thursday 14 February 2013
IMA: THE 11-COUNTRY FTT WILL IMPACT UK INVESTORS
The European Commission has today issued revised proposals for a Financial Transaction Tax (FTT), which will be applied in 11 European Member States*.
Julie Patterson, IMA Director of Authorised Funds and Tax, said:
“The UK is not one of the 11 countries which have signed up to adopt the tax. However, UK investors, pensions and funds will suffer the effects of the tax if they invest in securities from those countries, or if they undertake transactions with counterparts in those countries.
“Moreover, unlike stamp duty on UK equities, the tax will apply twice to every transaction – for the seller and for the buyer.
“It is important to ensure that the tax doesn’t hit every transaction multiple times where intermediaries are involved. It is not uncommon for there to be four or more intermediaries involved in a transaction, making what appears on the surface to be a 0.1% tax significantly more substantial.”
Notes to Editors
*The countries that have signed up to the FTT are Austria, Belgium, Estonia, France, Germany, Greece, Italy, Portugal, Slovakia, Slovenia and Spain.
For further information please contact:
About the Investment Management Association:
- The IMA is the trade body for asset managers (retail and institutional) who manage £4.2 trillion of assets in the UK as at December 2011.
- Our role is to support and promote a commercially successful and growing UK investment management industry as we seek to improve financial outcomes for customers – savers and investors.
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
- The UK is the second largest investment management centre in the world, after the US.
- The IMA has recently launched a consumer website providing comprehensive information on investment funds.