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UK slides down tax-friendly rankings
By Sharlene Goff in London

Published: May 1 2009 20:29 | Last updated: May 1 2009 20:29

The UK is rapidly sliding down the ranks of the world’s tax-friendly destinations as new higher rates mean entrepreneurs and business owners could be better off in traditional offshore havens and many other countries around the world.

Figures compiled for the Financial Times by Deloitte show that for a business owner earning £250,000 the UK will soon be more expensive than Ireland, the US, Singapore, Hong Kong and Germany, as well as Jersey and Switzerland.

EDITOR’S CHOICE
Weighing up benefits of domicile change - May-01Informa joins growing list of tax exiles - May-01Brit Insurance to move HQ to the Netherlands - Mar-09Beazley becomes latest company to relocate to Dublin - Feb-13The fading appeal of the UK reflects the new 50 per cent rate of income tax that will catch people earning £150,000 or more from next April and its high rate of national insurance for employers.

“When these charges are added together, individuals may think the UK is not an attractive place to do business,” said Bill Dodwell, partner at Deloitte.

He did, however, point out that the UK does have low corporate tax and a competitive business environment.

“Tax in the UK has got to such a level that they can go beyond the usual offshore locations,” said Mike Bussey, chief executive of Arbuthnot Latham, the private bank.

Switzerland remains the most popular choice for wealthy clients looking to avoid the UK’s higher taxes.

But advisers said Singapore and Dubai, with low income tax and attractive breaks for businesses, were becoming more viable options.

Mr Bussey said some clients felt a line had been crossed with the most recent tax increases.

“There has been a fundamental change in the perception people have of the UK as a friendly place for entrepreneurs,” he said.


Financial Times ............. com

where in the world do you live ... surely not in Dubai or in UAE?