HIGH-RANKING bankers and hedge fund managers living in London will pay more in personal tax and social security starting next month than if they were based elsewhere, according to research carried out by KPMG for Financial News.
The accountancy firm said from 6 April when the government implements its 50 per cent tax on income over £150,000, the City’s senior executives will pay more tax than they would if they lived in another financial centre. KPMG compared employee tax and social security payment data across eight separate financial centers with numbers for London today and after the new taxation law comes into effect.
KPMG said that London will move up the ranks and become the most expensive centre by employee tax and social security for professionals whose combined salary and bonus are over £500,000.
“You can see from the calculations that for those earning significant bonuses London has moved from being highly competitive to being the most expensive location,” said Ian Hopkinson, head of people-services tax at KPMG told Financial News.
However, Frankfurt and Paris are more expensive for professionals earning a combined salary and bonus of £250,000.