Post by Editor on Mar 19, 2013 10:58:15 GMT
EXCLUSIVE: British forces hit by Cyprus bank bailout tax WILL get 'every penny' back, Osborne insists
Tax grab would charge 6.75% on all deposits under £86k and 9.9% over that
In exchange Cyprus receives £8.6bn in rescue money from EU, IMF, ECB
Ministers expected to propose counter deal to save small savers more
Tax would hit tens of thousands of Brit expats, including Armed Forces
Brits expats to have pension payments frozen to avoid the tax, says minister
By MATT CHORLEY, JAMES CHAPMAN and MATT BLAKE
PUBLISHED: 09:56, 19 March 2013 | UPDATED: 10:42, 19 March 2013
Chancellor George Osborne is understood to have personally intervened to promise to protect savings of British forces in Cyprus
British forces caught up in the EU’s tax raid on banks in Cyprus are to be promised they will get ‘every penny’ back.
Chancellor George Osborne is understood to have personally intervened to overrule the Ministry of Defence to insist military personnel will not be left out of pocket.
The dramatic u-turn comes after servicemen were told just yesterday that they would only be compensated for ‘reasonable losses’ if their funds are ‘connected with their service in Cyprus’.
An announcement is expected to be made this morning that British troops will not lose out.
On Sunday Mr Osborne suggested the military would not suffer but yesterday MoD officials said that could mean those who have transferred funds to Cyprus to save for their retirement could lose out.
However, senior government sources told MailOnline that Mr Osborne has overruled the MoD and insisted 'every penny' lost by British personnel in the Cyprus bailout must be compensated.
Mr Osborne was spurred into action after ministers were accused of betraying British troops if they were left out of pocket.
Shadow Armed Forces minister Kevan Jones said: ‘It is absolutely vital that no member of our Armed Forces is out of pocket. Repayments and compensation from government must cover all losses.
'Anything less would be seen as betrayal across the military community and throughout the country.’
There are around 18,000 Britons of pensionable age in Cyprus, of whom around 12,000 claim a UK pension.
The dramatic volte-face in Britain comes as the Cyprus parliament is poised to block a controversial tax on bank deposits that would raid ordinary citizens' accounts in return for a bailout, pushing the island closer to full-scale financial ruin.
Read more: www.dailymail.co.uk/news/article-2295670/EXCLUSIVE-British-forces-hit-Cyprus-bank-bailout-tax-WILL-penny-Osborne-insists.html#ixzz2NyxFi5GW
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Tax grab would charge 6.75% on all deposits under £86k and 9.9% over that
In exchange Cyprus receives £8.6bn in rescue money from EU, IMF, ECB
Ministers expected to propose counter deal to save small savers more
Tax would hit tens of thousands of Brit expats, including Armed Forces
Brits expats to have pension payments frozen to avoid the tax, says minister
By MATT CHORLEY, JAMES CHAPMAN and MATT BLAKE
PUBLISHED: 09:56, 19 March 2013 | UPDATED: 10:42, 19 March 2013
Chancellor George Osborne is understood to have personally intervened to promise to protect savings of British forces in Cyprus
British forces caught up in the EU’s tax raid on banks in Cyprus are to be promised they will get ‘every penny’ back.
Chancellor George Osborne is understood to have personally intervened to overrule the Ministry of Defence to insist military personnel will not be left out of pocket.
The dramatic u-turn comes after servicemen were told just yesterday that they would only be compensated for ‘reasonable losses’ if their funds are ‘connected with their service in Cyprus’.
An announcement is expected to be made this morning that British troops will not lose out.
On Sunday Mr Osborne suggested the military would not suffer but yesterday MoD officials said that could mean those who have transferred funds to Cyprus to save for their retirement could lose out.
However, senior government sources told MailOnline that Mr Osborne has overruled the MoD and insisted 'every penny' lost by British personnel in the Cyprus bailout must be compensated.
Mr Osborne was spurred into action after ministers were accused of betraying British troops if they were left out of pocket.
Shadow Armed Forces minister Kevan Jones said: ‘It is absolutely vital that no member of our Armed Forces is out of pocket. Repayments and compensation from government must cover all losses.
'Anything less would be seen as betrayal across the military community and throughout the country.’
There are around 18,000 Britons of pensionable age in Cyprus, of whom around 12,000 claim a UK pension.
The dramatic volte-face in Britain comes as the Cyprus parliament is poised to block a controversial tax on bank deposits that would raid ordinary citizens' accounts in return for a bailout, pushing the island closer to full-scale financial ruin.
Read more: www.dailymail.co.uk/news/article-2295670/EXCLUSIVE-British-forces-hit-Cyprus-bank-bailout-tax-WILL-penny-Osborne-insists.html#ixzz2NyxFi5GW
Follow us: @mailonline on Twitter | DailyMail on Facebook
