US bosses quit London over non-dom payment

The directors, who want to remain anonymous, work for companies including Bank of America, McDonald's, Ernst & Young, and Bear Stearns.

City sources have revealed that they have issued notice to move back to America after the Government proposed charging foreign workers resident in Britain an annual £30,000 levy.

Dozens more workers from FTSE100 companies across the banking, oil, electronic, automotive and telecommunications industries, are also planning to leave London for rival financial centres to avoid the levy.

The revelations come as a poll for the Standard shows concern that the crackdown on the non-doms could affect London's future as a financial hub, with 37 per cent regarding Chancellor Alistair Darling's plan as a "bad thing" as opposed to the 28 per cent who backed it.

The Prime Minister Gordon Brown and Mr Darling are also facing criticism over the plans from the Mayor Ken Livingstone who warns that they risk damaging Britain's economy with the levy.

The move by the nine Americans is the first concrete evidence that the tax could force hundreds of City workers to leave the capital, taking investment with them.

One source told the Standard: "These are serious players in the City, who are quitting because of the proposed laws. They are major players who will be taking major investments with them... and this is just the tip of the iceberg."

At the same time, up-market estate agents have reported massive falls in the corporate rental market because so many senior executives want to leave London and flee tax bills which threaten to rise by hundreds of thousands of pounds. Experts warn that foreign workers resident in London, who have grown-up children, could face bills of at least £120,000 for a family of four.

Trevor Abrahmson, of Glentree International estate agents, said: "Several top City executives are going to Geneva, Dubai and Monaco. "They are very rich people who have homes around the world but a family of four would have to earn £200,000 before tax to pay the new non-dom levy, so it is a significant amount, even to them. "They are going to sell their houses in Mayfair or Kensington and Chelsea, dumping them on the market at an already difficult time. Then they will take their business overseas.

"Competing cities such as New York, Geneva, Monaco, Dubai and Frankfurt, would welcome these wealthy nondom businessmen with open arms."

Several associations in the City have decided to petition the Government to popstpone its plans for the "non-dom" levy for at least one year.

The London Investment Banking Association, the British Bankers' Association, the City of London Corporation, the CBI and London First will all make submissions to the Treasury by Thursday asking for a 12-month coolingoff period for the tax proposals to be debated properly.

Liba director Ian Harrison said: "The tax proposals for 'non-doms' have not been as well researched or as well thought out as they should be. In some cases they are highly complex and unworkable."

Mr Harrison added: "We estimate about 40 per cent of the 100,000 investment bankers who work in London - most of whom are senior managers or young graduate recruits in the banks - will be affected by these changes."

Individual banks, including the big US houses, are also protesting against the plans. A source has revealed that investment bank Goldman Sachs, which advised the Government on the Northern Rock saga, has held meetings with the Treasury on the subject.

Senior ministers are also understood to be concerned over potential damage to the UK and want the tax either changed or delayed.

Bankers fear the changes may prompt the bigger US houses to relocate their Europe, Middle East and Asia operational headquarters out of London. One said: "London may be the best centre now but once a big US bank like Citigroup thinks that its bankers are being penalised it will move very easily - Dubai, Geneva or Dublin. They are all serious alternatives.

"These proposals have been put through in a rushed, cack-handed and ludicrous manner. The City accepts that there should be equity over the tax treatment of domiciled workers and non-domiciled. However, the Government has once again rushed into this mess without thinking through the consequences, which could be severe."