Hedge funds threaten city exodus over bonus tax

The Labour government’s bonus tax for financial institutions has stirred up much concern among market participants, with some suggesting it could place London’s position as the major European financial centre in jeopardy.

In December’s pre-budget report, Chancellor of the Exchequer Alistair Darling announced a special one-off levy of 50% to be placed on any discretionary bonus above £25,000 paid by banks to employees between December 9, 2009 and April 6, 2010. The move is expected to net the

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