EU FTT ‘could result in significant costs for UK savers and pensioners’, says Eversheds

Ben Jones, tax expert at Eversheds, has commented on concerns that the introduction of an EU-wide financial transactions tax could hit UK savers.

Jones said that a key concern since the original inception of an EU financial transaction tax (FTT) has been its knock-on impact on savers and pensioners.

He said: ‘Although targeted at financial institutions as a means of extracting a contribution to the costs of the recent financial crisis, it has always seemed likely that any additional tax costs associated with the activities of such institutions would be passed down [in the form of increased fees] to final consumers — savers and pensioners.’

Adding that this concern is part of the reason why the UK has opted out of the EU FTT, Jones said: ‘However, as this most recent study demonstrates, the extra-territorial scope of the proposed FTT and the inter-connectivity of global financial markets means the FTT could still result in significant costs for the UK financial sector and UK savers and pensioners.

‘For this reason, the UK has mounted a legal challenge to the FTT with the European Court of Justice to seek to limit these potential impacts for UK savers and pensioners.’