The London Evening Standard reports that Terry Smith, the CEO of broker dealer Tullett Prebon, has admitted that many of his traders are rethinking their plans to flee the UK to avoid the tax increases being imposed next month.
Smith advised a few weeks back that his firm would be offering staff assistance to relocate to more certain tax regimes, but has now admitted: 'It's not an easy matter. People are looking at having to get rid of houses in this country and accept that they won't be coming back to visit their families. Her Majesty's Revenue & Customs has also got tough making it clear that people who move must have a foreign contract and that they cannot come back to the UK for business purposes'. Smith did confirm, however, that despite the obstacles, some employees remain interested in relocating.
One banker told Here Is The City: 'This really takes the biscuit. The UK government imposes punitive tax rates, and then makes it as difficult as possible for people to leave. No wonder that many people feel that we no longer live in a free country. Labour seems intent on letting everyone in, and no-one out!'.
Finally, The Independent reports that next month's tax increases will make the UK the most expensive financial center to work in for high-earning market professionals. The newspaper quotes Ian Hopkinson, head of people services tax at KPMG, who said: 'This is very stark. The facts speaks for themselves. If you earn above £250,000, London goes from being very competitive to completely uncompetitive'.