50% bonus tax pushes Brits abroad

The number of Britons moving abroad has risen as high-earners look for ways to protect their money from tax increases.

Chancellor Alistair Darling's announcement that bankers' bonuses over £25,000 would be hit by a 50 per cent tax rate has seen the nation's wealthy leaving at a rate of ten a week, according to research from the Sunday Times newspaper.

By escaping the government's windfall tax these soon to be expatriates could find that their pay goes further abroad than in the UK.

So far, Asia has been a popular choice, with high profile workers such as HSBC's chief executive Michael Geoghegan recently making the move to Hong Kong.

Neil Dyball from Robert Walters, a high profile international recruitment agency, said that the attraction of Asia has played as big a role in the exodus as tax increases.

He explained to efinancialcareers.com: "People come here [Asia] largely for positive reasons, because of the career opportunities and the fact that there are now more globally focused roles on offer."

As well as a windfall tax on bonuses, the chancellor's pre-Budget report will introduce a 50 per cent 'super-tax' rate applied to all earnings above £150,000.

The tax changes will be introduced in April 2010.

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Posted by Charlie Smith