London will be world’s worst financial centre for tax
11 April 2012
London-based bankers and hedge-fund managers will pay more tax than their counterparts in any competing financial centres when the new tax year starts next month.
A banker on basic pay of £250,000 and a bonus of £750,000 will see his take-home pay drop by almost £100,000 after 6 April, according to data compiled by accountants KPMG for City trade paper Financial News.
The highest rate of tax in the UK moves to 50% on earnings above £150,000 from next month.
It pushes London from the fifth-highest taxed financial centre, behind Frankfurt, Geneva, Paris and New York, to the most taxed. City recruitment firms have warned this is driving bankers abroad.
