Daniel Lewin Quoted in PLC Tax on the 2009 Budget

April 24, 2009

Daniel Lewin, Partner in the Tax Department, was quoted in PLC Tax, the U.K.'s leading tax news publication, in an article titled "Budget 2009: Reinforce your Desks." The article reveals the mixed reaction to the 2009 Budget through comments from the U.K.'s leading tax practitioners. Mr. Lewin commented that "[t]here is a serious disconnect between the many helpful changes to the UK investment funds tax regime announced in the Budget, following a long and constructive period of consultation between HMRC and the industry, and the potentially hugely harmful effect of the increase in the top income tax rate to 50% announced by the Government, one of the highest among industrial countries. The non-dom changes led many non-domiciled UK taxpayers in the hedge fund sector to reconsider whether they should stay in Britain, although very few actually left. The 50% income tax rate is likely to be the straw that breaks the camel's back, particularly as many managers are currently struggling or reviewing their operations. I believe that the next 18 months will - unfortunately - see a significant exodus of talent which could severely impact the recovery of the UK services industry on which the economy is so reliant, beyond the short term."

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