Financial Transaction Tax and Economic and Monetary Union

The hon. Gentleman will know that stamp duty follows the issuance principle—in other words, the tax follows where the instrument is originated. The proposed FTT contains that and a residence principle, so it captures a far wider range of transactions, as well as this cascade point which stacks up and racks up the impact. So it is a very different FTT from, and a very much inferior FTT to, the stamp duty.