Going Swiss

By THIS IS MONEY
Updated:

 

The Daily Mail City team explains 'going Swiss' - a recent trend of hedge funds moving their operations to Switzerland, in a bid to avoid higher taxes.

Like going Dutch?

No, this is nothing to do with dating etiquette and all about the whacky world of hedge funds.

They're leaving for Switzerland?

Exactly. Or at least some of them are.

BlueCrest Capital, one of the largest UK hedge funds, is moving a hunk of its operations to Geneva. Others are making ominous noises.

For the skiing?

No. It's because the poor dears are being made to pay higher taxes, with the introduction of the 50p rate and the non-dom crackdown.

What's more, the EU is proposing to tighten regulation on alternative investment managers.

Should we worry?

A study by Eurosceptic think tank Open Europe claims the UK sector contributes an impressive £3.2bn in tax revenue to the Exchequer. However this figure was derived from a survey of hedge fund managers, who aren't always known for being entirely candid.

What is to be done?

The proposed EU regulation has been dramatically watered down in recent weeks. And not all hedge fund managers really want to leave London for Switzerland given Geneva is not exactly the most dynamic of cities. All in all, the UK probably has bigger issues to worry about right now.

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