Hedge fund boss Crispin Odey has threatened to move his firm out of Britain to avoid the 50% income-tax rate on high-earners, reports The Sunday Times .
He joins a growing list of Britain's wealthy businessmen and City financiers, including Hugh Osmond and Peter Hargreaves, who have become disenchanted at the new tax rate and the European Union's proposed changes to regulation of private equity and hedge funds.
"We are seriously considering leaving," said Odey, who runs the £3 billion Odey Asset Management. "This government is not interested in keeping London alive as a financial centre. Hedge funds are not yet flying but they are fluttering. Everyone is thinking about leaving."
Odey, who made a fortune from short-selling British banks last year, is one half of the "Posh and Becks" of finance. His wife Nichola Pease is chief executive of fund manager JO Hambro and as a scion of one of the founding families of Barclays - where her brother-in-law John Varley is chief executive - is a City blueblood.
GUY HANDS, THE PRIVATE equity tycoon who owns EMI, the music group, is leaving Britain in protest at the rise in the top rate of income tax announced in the Budget, according to The Sunday Telegraph.
Mr Hands, who is chairman of Terra Firma Capital Partners, has moved to Guernsey in recent weeks, according to people close to him. His decision to relocate makes him the most high-profile City executive to quit Britain over the new tax rules amid growing fears of an exodus of talent. A friend of Mr Hands said last night: "Guy has gone offshore to Guernsey in view of the new tax regime.
"With two thirds of his income, including national insurance, now going to the taxman, he did not have much choice."
Terra Firma, which owns the Odeon cinema chain and the aircraft leasing company AWAS as well as EMI, has paid £1.4bn in British taxes since it was established 15 years ago, according to people close to the firm. Terra Firma itself is retaining its headquarters in London.
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