Labour’s tax on UK FX trades lambasted
Opposition party’s pledge to tax FX “50% of transactions costs” will hit jobs and investment, claim trade-cost experts
The Labour Party’s pledge in the UK to impose a financial transactions tax (FTT) on foreign exchange spot and derivatives trades will be counterproductive, and drive activity out of the City, according to FX trade-cost experts.
The tax would be based not on where trades are transacted but on who is carrying out the transaction, by applying a ‘residence principle’ along the lines of that already applied to income from dividends and capital gains. An exemption will apply to the first £1,000 of FX
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