But the fresh proposals also redouble efforts to stop traders shifting transactions to London, or anywhere else out of the FTT zone. The “residence principle”, of imposing the tax on all trading carried out by resident firms, regardless of where the trade occured, has been expanded to include an “issuance principle”. This captures all financial instruments originating from a resident country. “So a Volkswagen share traded between banks in London and New York would be charged,” said one source. “The charges will hit all sorts of companies, not just banks.”