Around a quarter of the City of London’s hedge funds could relocate overseas because of the new tax regime, a consultancy has predicted. David Butler, founding member of Kinetic Partners, the asset management consultancy, said that the new 50 per cent top rate of income tax was tipping many hedge fund managers over the edge.
“My expectation is that about 25 per cent of hedge fund managers in the UK will move overseas,” he said. The prediction came amid reports that high-profile City bosses are set to move overseas to avoid the higher rate of income tax.
