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UK’s Labour to impose stamp duty on bonds and derivatives 

May 16, 2017

Britain’s Labour Party pledged to more than double what the government raises from taxes on financial transactions by extending stamp duty to cover derivatives and bonds, and removing an exemption for trading houses.

The “Robin Hood Tax” would raise an extra £4.7 billion (Dh22.2 billion, $6.1 billion) a year, while eliminating “the most destabilising forms” of high-frequency trading, the opposition party said in a statement. Last year, stamp duty on share transactions raised £3.3 billion.

Financial firms would be charged the tax at 0.2 per cent on each transaction, while everyone else would pay 0.5 per cent, the rate currently charged on stocks. Labour’s estimates assume that the tax would cut the volume of high-frequency trading, it said.

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