KPMG: London faces worst taxes

Senior executives living in the City will start paying more in personal tax and social security than their counterparts elsewhere when the government’s 50% income tax comes into play next month.

According to research by KPMG, those who are taxed on their income over £150,000, will from the new tax year on 6 April, be paying more than if they lived in another financial centre.

Whereas London was once one of the most competitive financial centres, the research compiled by the accountancy firm has predicted it will become one of the most expensive of the eight financial centres in the survey, ahead of New York, Paris, Frankfurt, Geneva, Zurich, Dubai and Hong Kong.

Ian Hopkinson, head of people services tax at KPMG, said: ‘You can see from the calculations that, for those earning significant bonuses, London has moved from being highly competitive to being the most expensive location.’