Yahoo says it is relocating to Switzerland to “increase its financial performance.” Tax consultants warn that tighter tax rules on foreigners bringing money into the UK could push private banks to move a third of their business offshore. Chancellor Alistair Darling announced during his budget speech on Wednesday that people of Indian and other foreign origin who claim non-domicile tax status would need to pay 30,000 pounds after living seven years in the UK.

Corporate tax system

Reacting to Yahoo’s decision, Richard Lambert, the leader of the Confederation of British Industry, said: “We are deeply concerned that the UK corporate tax system is becoming uncompetitive and, without knowing the detail, this sounds like another sign of that.” Estate agents have also expressed concern that an exodus of high net worth non-domicile people could affect the housing market. Richard Turnor, a partner at law firm Allen & Overy, said those considering investment into the UK or deals with UK brokers would also think twice because of the new tax regime.