http://www.bloomberg.com/apps/news?pid=20601087&s…
Dec. 9 (Bloomberg) -- Chancellor of the Exchequer Alistair Darling imposed a 50 percent levy on banker bonuses and said he will increase income taxes after elections next year as the worst recession on record drives up U.K. government borrowing.
| +160 | UBS Tech layoff | 52 | 1d |
| +149 | Analyst: Why is UBS IB doing worse than peers?, UBS CFO: No Comment | 24 | 1h |
| +146 | UBS’s M&A BANKERS ARE DOING TERRIBLY. $200M EXTRA IS BEING CUT | 31 | 4h |
| +59 | Are target prospects getting dumber? | 27 | 2h |
| +58 | How do YOU manage networking requests? | 17 | 9h |
| +54 | Leaked Interview Questions to Recruiting Services | 33 | 30m |
| +37 | Quitting After First 4 months | 12 | 1d |
| +34 | MBB Pay Raises | 26 | 1d |
| +19 | Career Crossroads | 2 | 2d |
| +17 | Rothschild UK - Mining & Healthcare 2026 | 5 | 3d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
hahahahahaha what a fucking joke. I wouldn't be surprised if even more people start leaving the UK. Darling really is an idiot.
Pay will iterate to a fair after-tax amount over time or good bankers will leave and work elsewhere.
Increase in income tax announced a while ago; National Insurance increase new though.
Banks are paying the special bonus tax - plenty of ways around it from what I've heard.
Taxes come and go, but I expect that more talent will leave and go to hedge funds/PE shops/ etc
The way around this is simple for the firms. You use one of your non-UK-domiciled legal entities to pay the bonuses to staff in the UK. You simply transfer the bonus pool to a different office who pays the actual bonus to employees. I don't see how it's illegal, and it avoids the special tax. You still have to pay taxes on funds bround into the UK, but if you have an offshore account (and you're not American), you can avoid the taxes altogether.
Thoughts?
I am pretty sure banks will find a way around that...maybe people will get a raise just before the bonus and next year they will have a drop in salary :-) To follow up with the previous comment it was clearly mention by top UK gov people that they will monitor any tax avoidance scheme so I am curious to see what type of actions will be taken there...but at the end of the day I agree that certainly something can be done overseas, not sure how you can get back the money to the UK...anyway that will be interesting to follow. I am in London, it's a huge story here as you can imagine, Barclays CEO even told that bankers will fly away from London, etc...
Im thinking of the same work around. It will be very easy for banks to dance around that retarded tax...for now. Bloomberg had that same article about 6 weeks ago and some big banks were talking about going to Zurich or Moscow if taxes get out of control
UK sucks anyway. Ugly chicks, high taxes, shitty food, not much too like.
Amen.
Illo quia quia necessitatibus eos maxime sint dolores voluptatum. Repellat ut ducimus nobis fugit consequatur laborum error enim. Sapiente nostrum incidunt nemo nulla optio. Voluptatem quia aliquid deserunt in. Aliquid dolorem ea molestiae et et ex.
Quasi enim ipsam modi qui placeat consequatur quod. Est qui dignissimos autem. Rerum exercitationem sunt molestias eos amet. Perspiciatis esse voluptate beatae occaecati architecto voluptatem. Voluptas autem ex similique pariatur et. Et quo velit sint doloribus.
At debitis cupiditate odit repellendus. Rerum et tempore eos numquam. Fugiat vel dolores dolores reprehenderit error repudiandae quia. Autem corrupti sed aut. Architecto nihil necessitatibus ut. Itaque pariatur ratione totam rerum quas similique.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...