The European Parliament’s Economic and Monetary Affairs Committee has proposed that, if the Financial Transaction Tax is not levied on a financial transaction, tangible or otherwise, the investor will not legally own the property.
Financial transactions could include property stocks and shares and derivatives and, according to the proposal, if the FTT is not levied, the investor will not own the investment meaning it cannot be sold and rendering it worthless to the investor.
This is an amendment to the draft FTT directive and still has to be passed by the council.
Godfrey Bloom, economic spokesman for the UK Independence Party, said: “The EU appears determined to turn the financial markets to stone, just at a time when the EU should be fostering certainty in the eyes of commerce to encourage private enterprise and private investment into the southern eurozone to balance government austerity and promote economic growth.
“Once again we see the EU’s approach to private property rights – just as in Cyprus – the EU is prepared to steal your assets in order to feather its nest.”
He believes that the committee’s amendment undermines the rights of all subsequent purchasers of that property by preventing title in the property from passing even if they buy in good faith.
Mr Bloom said: “No-one in the market will have any certainty that they have good title: how are they supposed to know who has paid the tax and who has not? How can purchasers put a value on something when they won’t know whether they will acquire legal title?
“The EU Commission has drafted the tax in such a way that it will have extra-territorial effect outside of the eurozone and will in effect be levied on businesses in the City of London that take advantage of the single market.
“This is the attitude of the EU under their ‘enhanced co-operation’: they aim to tax UK businesses to pay for the eurozone financial crisis – it’s taxation without representation.”