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London's rich flee 50% tax regime
Danny Brierley11.05.09
Financiers are planning to leave London en masse to avoid the new 50 per cent tax rate for high earners.
The revelation comes as Guy Hands, the private equity tycoon who is chairman of Terra Firma Capital Partners, is said to have moved to the tax haven of Guernsey. A friend of Mr Hands said: "Guy has gone offshore in view of the new tax regime. With two-thirds of his income going to the taxman, he did not have much choice."
Hedge fund manager Crispin Odey has also reportedly threatened to move his firm, Odey Asset Management, out of the UK. "This government is not interested in keeping London alive as a financial centre. Everyone is thinking about leaving," he said. He accused the government of abandoning high-earners in an attempt to woo back disenchanted Labour voters.
Reader views (18)
I THINK ITS A BAD THING THESE PEOPLE LEAVING THE UK, YOU HAVE TO REMEMBER THESE PEOPLE WORKED HARD TO GET TO WERE THEY ARE AND TO LOSE 45% OR MORE OF THERE EARNINGS IS NOT FAIR IN REAL TERMS, HOW WOULD YOU LIKE TO LOSE 50% OF YOUR WAGES? THE ANSWER IS YOU WOULDN'T, THEN THERES THE JOBS THESE PEOPLE SUPPORT LIKE PLUMBING BUILDING THE HOUSING MARKET, RESTURANTS TO MENTION A FEW, THIS WILL AFFECT ALL OF US AND TAXES FOR YOU WILL HAVE TO RISE TO MAKE UP FOR LOST CORPORATION TAX, LOWER INCOME TAX/NI RECIEPTS, LOWER CAPITAL GAINS TAXES, AND ALL THOSE TAXES ASSOC WITH BUSINESS'S AS THEY LEAVE OH AND GREATER UNEMPLOYMENT ALSO. THIS GOVERNMENT IN MY VIEW HAS GOT THIS WRONG AND SHOULD INSTEAD CUT TAXES AND ENCOURAGE MORE BUSINESS'S TO COME AND TRADE FROM HERE THUS INCREASING TAX RECIEPTS AND IN TURN LOWERING THE TAX BURDEN ON ALL OF US.
- Simon, HEMEL
well said Damian , for the rest of you it must be bliss tobe soo ignorant
- Adam, london
Thanks again for proving that the vast majority of the population have no idea of how business/economics/tax works in this country, but are happy to lap up the pathetic ramblings of the popular press on the matter.
It's all very well for those seeking revenge to knock successful wealthy individuals, most of whom are not related to finance/city, but engage in other profitable business enterprises. Jealousy is a sad human trait.
At the end of the day the tax take by the government will fall as a result of more people moving offshore and as accountants find new measures to reduce tax for high earners/businesses who stay. I wouldn't feel so smug about it either as taxes both direct and indirect will then have to rise for us all as the government scrambles to fill the hole these individuals and their businesses leave for the treasury.
- Damian, London
London's rich flee 50% tax regime . . . Good!
- Fraser, Telford Park
How does the fellow Guy Hands lose "two-thirds" of his income to the UK taxman? 50% is one-half, and that tax level is applicable ONLY to income in excess of £100k. London is terribly overcrowded and overly-expensive, so maybe the exodus of some of these high-fliers will help ease the old city. Doesn't the UK taxman have jurisdiction all UK nationals everywhere regarding their income ARISING IN the UK, so surely it doesn't matter WHERE Hands goes to live, he will still have to pay UK taxes on all his income arising in the UK. Brits living in the USA have to, for example.
- Ben Adamson, New York, NY
Come on over, it's great. I left six years ago and wild horses wouldn't drag me back. On the strength of the UK housing market, bought a better house over here, mortgage free, and had plenty to keep me going till I established my own successful business. Leave the UK to the whingers and the losers.
- Paul, Orlando, FL (Ex-pat)
Seriously, who really cares if these two leave the country or if a few other similar 'types' do the same? Are the rest of us meant to beg them to stay?
They seem to have a highly exaggerated sense of their own importance, but that's unsurprising because their lifestyles, houses, modes of transport, etc, cocoon them from the everyday concerns of most British people.
- Mike, Cardiff UK
Well, they must certainly be getting desperate if they are thinking of moving somewhere as boring as the channel islands! I take it they wil be back in London by Christmas.
- Matt, London
Bye then rich people, please take the immigrant workers who you've been exploiting out of the country along with you to greener pastures (!)
- Cap, london
Yes chaps, goodbye, good riddance and close the door behind you. Greedy Private Equity firms and Hedge Funds are why we are in this mess in the first place.
- Londonman, London
How come the Channel Islands enjoy all the benefits of being British and yet don't contribute towards it?
- Albert Swift, Aberdeen, Scotland
All very well mocking them, but I'd rather we had 40% of their income than none at all.
As someone who (unfortunately) doesn't even come CLOSE to paying the new 50% tax rate, I still think it's unfair, absurd and counter-productive.
It's simply about revenge, not revenue.
When a government starts looking for revenge on it's providers, (most of whom are no more culpable for this recession than the bottom tier payers) that's when I think we all, of all incomes, have to start worrying...
- John, London
Good riddance to bad rubbish!
- Michael Kaldezar, London, united kingdom
Just leave the cash and your passport, and have a nice life.
- The Masked Avenger, hammersmith
Goodbye Guy, Crispin, none of us will miss you. Tax avoidence should be made a crime the penalty should be that re entry to the UK prohibited.
- Paul B, London
To be fair, that's two people, one of whom is moving 11 months before the new rate begins to apply while the other is only "threatening" to move. No doubt the latter will consider where he will spend his fortune while he lives on Guernsey, which to my knowledge has a little less to offer than London to the wealthy in terms of world class culture, cuisine and shopping.
- Keith, King's Cross, London
Trouble is Bloke, who's going to replace them? I'd prefer 'gordon, alistair: Good bye'!
- Chris, Brighton, England.
Guy, Crispin: Good-bye!
- Bloke, London
