World Champion Tax Exile

It is, of course, wonderful that Lewis Hamilton has become the youngest Formula 1 World Champion Racing Driver and is all set, apparently, to become a multi-millionaire. Less wonderful is the fact that he will be living as a tax exile in Switzerland. But can you blame him if it means that he will keep a lot more of what he earns.

Wealthy potential immigrants to Switzerland can do a deal with the Swiss authorities that limits the amount of Swiss tax they pay. Our government on the other hand has, been busy attacking wealthy foreign nationals who are resident here by withdrawing the remittance basis of taxation once they have been here for seven years unless they pay a fixed annual tax levy of £30,000.

The Swiss have obviously realised that even if wealthy expats are not paying much Swiss tax they are spending money in that country.

If any further proof was needed that no Government in future will be able to squeeze the very wealthy until the "Pips Squeak" this is it. High earners won't stay here and pay what they regard as unacceptably high levels of taxation.

The time has come for politicians of all parties to realise that there is not a bottomless pit of money that they can dip into whenever they want to and leave us all to pick up the bill in the form of increased taxes. People will, like Lewis Hamilton, vote with their feet.