British hedge funds that relocated to Switzerland in an attempt to avoid rising UK taxes are now being hit by the soaring Swiss Franc, reports The Telegraph.
The majority of the hedge funds involved — such as Brevan Howard and Amplitude Capital — pay their staff in US dollars. Now, with the seemingly gravity defying rise of the Swiss Franc, their spending power is being greatly reduced.
The hedge funds had moved in an attempt to avoid rising taxes in the UK, such as the 50% income tax, reports The Telegraph.
For many living in Switzerland, it’s now become cheaper to drive to Germany than to shop in Switzerland itself, reports Der Spiegel.
The drive from Zurich to German border town Lorrach takes around 1 hour and 13 minutes, and afterwards shoppers can claim the sales tax back.
In fact, many Swiss seem pretty happy with their cheap shopping, but for hedge funders earning a foreign currency, Switzerland doesn’t seem so attractive a place to live anymore.