Guy Hands threatens offshore move

The tax changes in the
has prompted Guy Hands, the founder of
Terra Firma,
to warn an offshore move for part of his UK-based private equity group, which
owns EMI and the Odeon/UCI cinema chain.

The group is reviewing the expansion of its overseas operations in response
to the tax changes, according to The Times.

‘Such trends in UK taxation, making the UK a less competitive financial
centre than it was, have caused us to review our UK activities and may result in
future growth being pursued through our other European offices,’ Hands said in
his annual review released yesterday.

‘Taxing long-term capital gains more like annual income will encourage
businesses to be less long-term in their approach and will undermine one of the
biggest benefits of private equity investment.’

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