Switzerland is mulling over plans for a special 10pc tax rate for hedge fund managers in a radical move to lure the booming industry away from London.
Hans-Rudolf Merz, the finance minister, has held a series of meetings with leaders of the Swiss banking and investment world over recent weeks to thrash out fresh incentives to counter the overwhelming dominance of the City of London in finance.
The Swiss banking federation has proposed a 10pc tax on the elite managers, effectively cutting their marginal rate by 35 percentage points. Mr Merz said he was open to the scheme, saying something had to be done to stop the exodus of funds to London. “It’s an idea I’m carrying around,” he said. “The financial marketplace is of enormous importance to our country. I know that we have a disadvantage in taxes. We understand the problem, and we have to solve it.”
