UK nixes Bourse Tax in lieu of financial Transaction Tax

http://www.telegraph.co.uk/finance/9028931/UK-rejects-German-olive-branch-of-exchange-tax.html

Britain has rejected an olive branch aimed at bringing the country back into the European financial fold, following David Cameron's historic veto on proposals for greater economic integration.German economic minister Philipp Roesler on Friday floated a European "bourse tax" as a compromise to a wide-ranging financial transactions tax (FTT) that would hit London harder than other European financial centres and make the City less attractive as a global business centre.

Chancellor Angela Merkel's spokesman called the idea "sensible". Speaking ahead of Monday's eurozone financial ministers summit, he said: "[Mr Roesler] is looking at all possibilities for getting the UK on board... We need to find out in talks whether a bourse tax could be a bridge for the UK, then Germany will discuss this with its European partners."

No details have emerged how such a scheme, which could fund economies reeling from the eurozone debt crisis, could work. However, it might be similar to the 0.5pc stamp duty on share trades already in place in Britain, which is levied on the investor. A similar scheme could be introduced across all of Europe.

But the proposal is unlikely to win No 10's backing. Last month the Prime Minister blocked European legislation aimed at defusing the eurozone debt crisis after failing to win safeguards for the City.

Earlier this month, he said he would veto a European FTT unless it was imposed globally, widening the split with Brussels.