CONTENTS
Terms of Reference
Summary
Chapter 1: Introduction
Box 1: Recent Commission Legislative
Proposals in Relation to the Financial Sector
Chapter 2: Assessing the Commission's objectives
a) To avoid fragmentation in the internal
market
b) To ensure financial institutions make
a fair contribution
c) To create disincentives for transactions
that do not enhance the efficiency of financial markets
Box 2: High-Frequency Trading
d) To create a new revenue stream
e) To pave the way for a global FTT
Overall conclusion
Chapter 3: Assessing the Commission's proposal
Box 3: The principal design elements
of the commission's proposal
a) The residence principle
b) Scope and the potential for relocation
c) The economic impact of the tax on economic
growth and market liquidity
ii) Liquidity
iii) The Commission's Impact Assessment
d) Incidence
e) The base and rate of the tax
ii) Tax rate
iii) A cascade effect?
Figure 1: Illustration of a potential cascade
effect
Overall conclusion
Chapter 4: The effect of an FTT on the UK
a) The significance of the financial
sector in the UK and EU economy
b) Assessing the impact of an FTT on the
UK
c) The impact of a euro area FTT
d) Assessing the Government's position
Chapter 5: Alternatives to a Financial Transaction
Tax
a) A Financial Activities Tax (FAT)
b) The UK Stamp Duty model
Chapter 6: Conclusion
Chapter 7: Summary of Conclusions
Appendix 1: EU Sub-Committee on Economic
and Financial Affairs and International Trade
Appendix 2: List of Witnesses
Appendix 3: Call for Evidence
Appendix 4: Glossary
Evidence is published online at www.parliament.uk/hleua
and available for inspection at the Parliamentary Archives (020
7219 5314)
References in footnotes to the Report are as follows:
Q refers to a question in oral evidence;
Witness names without a question reference refer
to written evidence.
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