TaxPersonal TaxCity talent could move on over tax hike

City talent could move on over tax hike

Advsiers warn that tax hike for high earners could hit the City's competitiveness in the war for talent

The city could lose the war for talent over changes to higher rate tax and
national insurance, warns Grant Thornton.

The increases in tax mean higher earners will face an effective 46.5% rate,
which could ‘erode’ the UK’s competitive position for talent, said Grant
Thornton head of its national tax office Francesca Lagerberg.

‘In the global war for talent, this must damage the City’s ability to attract
and retain the brightest and best, and over time is likely to erode the UK’s
competitive position,’ said Lagerberg in the
FT.

In the pre-Budget report the chancellor said the personal allowance would be
halved for those earning more than £100,000 from 2010, and abolished for those
earning over £140,000 from 2011. National Insurance will rise by half a percent
from 2011.

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