Reasons to stay
Sir: While I agree with much of Fraser Nelson’s analysis on the impact of higher taxes on total tax revenue (‘Osborne’s tax exiles’, 13 November), he misses one key aspect of the Chancellor’s tax reforms: the extension of entrepreneurs’ relief on capital gains tax from £1 million to £5 million.
In September 2008, having worked for the Saatchi brothers for 21 years, I left my comfortable, well-paid and secure job to create a virtual global agency via the internet. Given the nature of my business model I could locate in Bahrain and pay no income tax. But the opportunity to build capital value from my new business and after three years pay only 10 per cent capital gains tax is the risk/reward ratio that is incentivising me to stay in the UK despite the increased income tax burden (as well as loss of child benefit, personal allowances and pension benefits).
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