There has been much speculation in the press concerning the attractiveness of the UK to overseas entrepreneurs. Last week, the chancellor George Osborne indicated that he would reduce the 50p top rate of tax in order to maintain the UK’s international competitiveness. However, it is not clear how much of an impact such a policy will have on wealth overseas businessmen. Similar concerns were raised several years ago when the £30,000 tax was imposed on the non doms. However, the mass exodus of non doms never did take place in the end as the UK remains a desirable place to both live and do business.
Anyone who is worried that the wealth taxes proposed in this week’s budget and the banker bashing will lead to the wealthy moving overseas to lower tax countries such as Switzerland can take comfort from the fact that Lewis Hamilton has moved to Monaco, the home of his favourite Grand Prix, after deciding Switzerland was too "boring" for him.
Put simply, there are other factors to consider and it is unlikely that there will be a mass exodus of the bankers and other wealthy individuals from the UK to Switzerland anytime soon.