Impact of 50% tax 'not as bad as feared'

Fears that the new 50 per cent tax on high earners would lead to an exodus from the City may have been overstated.

According to new research from finance recruitment firm Selby Jennings, senior bankers in London have largely managed to protect their private wealth, as they are still typically earning twice as much after tax as their counterparts in Geneva and Zurich.

There were worries the new levy - which applies to those earning over £150,000 per year - would result in bankers leaving London in favour of places like Switzerland, which has a more favourable tax regime.

However, there are fewer highly-paid positions available in the country’s two main financial sectors and Adam Buck, managing director at Selby Jennings, said: ’London and New York are the only markets large enough to offer those roles in any significant quantity.’

The new capital gains tax is expected to cause more problems for those with high levels of private wealth, with investors expected to begin selling off some of their assets to minimise their exposure to the charges.ADNFCR-2318-ID-19780743-ADNFCR