Lord Stoddart of Swindon – 2014 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Lord Stoddart of Swindon on 2014-06-09.

To ask Her Majesty’s Government, following the dismissal of the United Kingdom’s challenge to the proposed financial transaction tax at the European Court of Justice, whether they have any plans to re-examine the extent of European Union competence in respect of United Kingdom taxation; and whether they consider that the application of such a tax would trigger a referendum under the terms of the European Union Act 2011.

Lord Deighton

The Court of Justice of the European Union ruling on 30 April deemed the UK challenge to the FTT was premature, but confirmed that the Government could challenge a future FTT Implementing Directive.

The introduction of the FTT under the Enhanced Cooperation Procedure would not be a relevant transfer of sovereignty or power for the purpose of the “referendum lock” in the UK’s EU Referendum Act.

The extent of European Union competence in respect of United Kingdom taxation was set out in the Balance of Competences Review, published 22 July 2013, and available at:

https://www.gov.uk/government/consultations/taxation-report-review-of-the-balance-of-competences.

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