London's rich flee 50% tax regime

Financiers are planning to leave London en masse to avoid the new 50 per cent tax rate for high earners.

The revelation comes as Guy Hands, the private equity tycoon who is chairman of Terra Firma Capital Partners, is said to have moved to the tax haven of Guernsey. A friend of Mr Hands said: "Guy has gone offshore in view of the new tax regime. With two-thirds of his income going to the taxman, he did not have much choice."

Hedge fund manager Crispin Odey has also reportedly threatened to move his firm, Odey Asset Management, out of the UK. "This government is not interested in keeping London alive as a financial centre. Everyone is thinking about leaving," he said. He accused the government of abandoning high-earners in an attempt to woo back disenchanted Labour voters.