Big earners ‘will flee City to escape top-rate tax’

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

One economist said that the new tax regime, which also hits allowances for people earning more than £100,000, could lead to up to 25,000 high-earning City workers leaving the country. This could cost the Treasury up to £800 million in lost tax revenue.

Doug McWilliams, chief executive of the CEBR think tank, said: "The main beneficiaries are likely to be Swiss property owners who will find a ready market for their properties amongst the better off from the UK looking for a bolt-hole."

Carolyn Steppler, associate partner at accountants KPMG, said she had started to receive calls from clients within minutes of the Chancellor's announcement. She said: "The question from all of them is really how can I leave the country'."

The 50 per cent top rate tax is now among the highest in the developed world. It compares with 40 per cent in France, 42 per cent in Germany, 43 per cent in Spain and Italy, and around 41 per cent in the US.

Ms Steppler said: "The 45 per cent rate was seen as a wee bit high but this will push people over the edge."

Ed Meades of estate agents Douglas & Gordon said: "Until recently the idea of going to France to escape tax would be a joke but the fact that this is now the case says everything."

He said the green shoots in the London property market could be threatened by foreign buyers having second thoughts.

Marcus Carlton, marketing director of wealth management firm HFM Columbus said: "The City of London has been the engine of income for the country for 15 to 20 years and any chancellor mucks around with that at his peril."