A whopping one in four hedge funds have left London because of the 50% bonus tax, or coincidentally since the tax was instituted.Brevan Howard, Moore Capital, and Michael Platt’s BlueCrest are the biggest fund names to leave for more profittable pastures in Switzerland, but clearly they are three of many. And losing them is costing the city tons of money and pride – their tax is totally backfiring. At some point they’re going to break even, if they haven’t already.
We predicted the loss in taxes for London was up to £400 million in July, based on the city losing taxes on hedge fund employees’ incomes alone.
Now the Financial Times is estimating the city is losing up to £500 million annually. Oof.
Lloyd Blankfein warned Europe last week that Goldman and other banks would do the same thing if taxes were increased. The financiers have the cities in a choke-hold.