Further UK challenge to FTT possible, according to Ben Jones from Eversheds

Eversheds has commented on the rejection of the UK’s challenge to the proposed Financial Transaction Tax (FTT).

Ben Jones, tax expert at the law firm, said: ‘The court’s rejection of the UK’s challenge was anticipated but, from the details currently available, should not prevent a further challenge being raised by the UK if necessary.

‘Reading between the lines of the court’s initial statements, the UK’s challenge has failed at this stage since the substantive features of the FTT have not yet been finally determined, meaning the court cannot rule on whether EU law would be breached by its introduction.

‘The UK should have another opportunity to challenge if its problematic features, such as its extra-territorial effect, remain in the final form of the tax.’