Caxton FX sees increased interest in clients moving overseas

The UK Budget last week was notable for the steep increase in personal tax rates for people who earn more than £150,000 a year.

The combination of an increase in the top rate of income tax to 50% and withdrawal of personal allowances and the restriction of pension relief adds up to a marginal rate above 60%. There also remains the threat of further increase in taxes in coming years as the country struggles to get its borrowing under control.

Caxton FX, the leading foreign exchange brokerage, says that it has seen a surge in enquiries since the Budget last week from clients who are interested in moving their money overseas and changing their residence before the new taxes come in next year.

"We have been inundated with enquiries from our clients," says James Hickman, managing director of Caxton FX. "Some are simply looking to transfer capital overseas, some already are based part of the year out of the country and there are some with second homes in the UK who will suffer withdrawal of holiday let tax reliefs and as a result are thinking of selling up and buying property overseas. These people are not celebrities or high profile people who figure in the Rich Lists but simply clients with some capital worried about preserving their assets."

"Our view is that sterling will continue to improve against the euro over the summer and the autumn as the full extent of the recession in Europe becomes more obvious and that the next twelve months will be a good time to make the move."