George Osborne with Jack Lew, the US Treasury secretary, in Washington. Photograph: Yuri Gripas/Reuters

Britain is mounting a legal challenge to plans by 11 European nations to adopt a new financial transactions tax amid concerns that the plan will affect banks and institutions in countries outside the scheme.

The scheme, also known as a Tobin tax , would put a levy on all euro transactions anywhere in the world. But hopes for it suffered a setback when George Osborne said in Washington that the UK was taking the case to the European court of justice (ECJ).

"I am not against financial transaction taxes in principle," the chancellor said, noting that the UK put stamp duty on shares. "But I am concerned about the extra-territorial aspects of the European commission 's proposals."

Earlier this year 11 countries – Germany, France, Spain, Italy, Belgium, Portugal, Greece, Austria, Slovakia, Slovenia and Estonia –

George Osborne with Jack Lew, the US Treasury secretary, in Washington. Photograph: Yuri Gripas/Reuters

Britain is mounting a legal challenge to plans by 11 European nations to adopt a new financial transactions tax amid concerns that the plan will affect banks and institutions in countries outside the scheme.

The scheme, also known as a Tobin tax , would put a levy on all euro transactions anywhere in the world. But hopes for it suffered a setback when George Osborne said in Washington that the UK was taking the case to the European court of justice (ECJ).

"I am not against financial transaction taxes in principle," the chancellor said, noting that the UK put stamp duty on shares. "But I am concerned about the extra-territorial aspects of the European commission 's proposals."

Earlier this year 11 countries – Germany, France, Spain, Italy, Belgium, Portugal, Greece, Austria, Slovakia, Slovenia and Estonia –

George Osborne with Jack Lew, the US Treasury secretary, in Washington. Photograph: Yuri Gripas/Reuters

Britain is mounting a legal challenge to plans by 11 European nations to adopt a new financial transactions tax amid concerns that the plan will affect banks and institutions in countries outside the scheme.

The scheme, also known as a Tobin tax , would put a levy on all euro transactions anywhere in the world. But hopes for it suffered a setback when George Osborne said in Washington that the UK was taking the case to the European court of justice (ECJ).

"I am not against financial transaction taxes in principle," the chancellor said, noting that the UK put stamp duty on shares. "But I am concerned about the extra-territorial aspects of the European commission 's proposals."

Earlier this year 11 countries – Germany, France, Spain, Italy, Belgium, Portugal, Greece, Austria, Slovakia, Slovenia and Estonia –

George Osborne with Jack Lew, the US Treasury secretary, in Washington. Photograph: Yuri Gripas/Reuters

Britain is mounting a legal challenge to plans by 11 European nations to adopt a new financial transactions tax amid concerns that the plan will affect banks and institutions in countries outside the scheme.

The scheme, also known as a Tobin tax , would put a levy on all euro transactions anywhere in the world. But hopes for it suffered a setback when George Osborne said in Washington that the UK was taking the case to the European court of justice (ECJ).

"I am not against financial transaction taxes in principle," the chancellor said, noting that the UK put stamp duty on shares. "But I am concerned about the extra-territorial aspects of the European commission 's proposals."

Earlier this year 11 countries – Germany, France, Spain, Italy, Belgium, Portugal, Greece, Austria, Slovakia, Slovenia and Estonia –