Bankers escape the City to avoid the UK super tax

UP to 200 Credit Suisse investment bankers could be relocated to Switzerland in order to avoid the 50 per cent “super tax” implemented by the Government earlier this year.

The tax covers bonuses awarded between 9 December 2009 and 5 April next year.

Swiss newspaper NZZ am Sonntag also said UBS was considering a similar move and had in December mulled over moving posts out of London.

Both companies declined to comment on the matter when contacted by City A.M. yesterday.

“There is a constant assessment on where staff should be located,” a Credit Suisse spokesman said. “It is wrong to presume that there is a shift from London to Zurich,” he added.

Banking executives warned the Government that the one-off 50 per cent tax on bankers’ bonuses above £25,000 would lead to defections from the City.

Higher earners also pay 50 per cent rate of income tax, currently one of the highest in Europe.
Sean Drury, a partner at PricewaterhouseCoopers, said: “Countries like Switzerland will look increasingly attractive to to people.”