Hedge Funds UK Tax
Hedge Funds Departing UK Cost Government $791 Million
Critics of the United Kingdom's tax hike on hedge funds have noted the likely departure of many hedge funds and the resulting loss of government revenue. A new estimate from the Financial Times found 1 in 4 hedge funds managers have moved from the UK to Switzerland to enjoy more preferential tax treatment. This has an estimated cost to the UK government of $791 million.
One in four hedge fund managers have moved from London to Switzerland, at an annual cost to the U.K. government of an estimated 500 million pounds ($791 million) in tax revenue, the Financial Times reported.
Hedge fund managers are relocating to Switzerland because of its stable tax system and to avoid “fiscal volatility and political hostility” in the U.K., the FT said, citing consultancy Kinetic Partners LLP.
The departures of Alan Howard, founder of Brevan Howard Asset Management LLP, Europe’s biggest hedge fund, and Mike Platt of BlueCrest Capital Management Ltd. will cost the treasury 200 million pounds in lost revenue, the newspaper reported, citing its own analysis. Source
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