Top City broker helps staff relocate overseas

Tullett fears brokers could move to foreign rivals unless they can escape 'supertax'

The fallout from the Government's controversial bonus tax was felt in earnest yesterday as one of the Square Mile's biggest trading companies paved the way for its staff to move abroad to more attractive tax regimes.

Tullett Prebon, an interdealer broker, has offered employees the chance to move to one of its overseas offices days after Alistair Darling announced the 50 per cent "supertax" on bank bonuses in his pre-Budget report.

The news comes as banks have started to move traders abroad to avoid the more punitive tax regime, in an attempt to hold on to valuable staff.

Terry Smith, the chief executive of Tullett Prebon, sent an email to senior managers last week to say the group would help any of its brokers that wanted to move to regions with "more certain tax regimes".

Employees at Tullett, which trades derivatives on behalf of investment banks, can transfer to one of its other offices, which include Switzerland, Bahrain, Hong Kong and Singapore.

However, some industry insiders said Tullett, which employs about 700 brokers in London, may be jumping the gun because the tax might not affect interdealer brokers at all.

"The Treasury is dragging its feet on explaining fully who is affected," the source said. "It is understandable that Tullett is looking at how the bonus tax affects employees, but can you really run your business on one-off issues?"

Mr Smith's email conceded that the company was not sure whether the tax would affect it, but said Mr Darling's "explicit refusal to guarantee that similar 'one-off' taxes will not be imposed next year and in subsequent years, has caused a number of you to once again raise the matter of relocation out of the UK".

A spokesman for Tullett added: "The board has concluded that it is in the best interests of shareholders to respond to requests to relocate out of the UK and will seek to facilitate, where possible and appropriate, relocation to the company's other offices around the world which have more certain taxation regimes."

The company fears that if it does not offer its brokers the chance to move, they will join foreign competitors who could offer a better deal. The company refused to be drawn on whether it would move its headquarters out of Bishopsgate in the City.

As public and political hostility towards bankers has escalated – especially over the return of big bonuses despite the downturn – the Treasury pledged last week to slap a one-off 50-per cent tax on bonus payments of more than £25,000.

Moving staff would not be a big problem for Tullett because interdealer brokers can trade from anywhere. In a country such as Switzerland, in a similar time zone, they could even "get an extra hour in bed", as one City source pointed out. He added that while no companies had made such a sweeping move as Tullett, "many investment banks are moving individual trading desks abroad because of the tax".

The source said it was not essential for interdealer brokers to be in London but added: "This is where many of the clients are. If [a broker] has to get on a plane every time they want to win a new mandate, it becomes difficult to pull off. The most important thing is how best to service your clients at the best cost. Personal tax is taken into account but it isn't the primary driver."

Tullett is embroiled in a legal wrangle with BGC, which it accuses of trying to poach 170 of its staff.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
News
ebooksNow available in paperback
Life and Style
tech
News
The 67P/CG comet as seen from the Philae lander
scienceThe most important scientific breakthroughs of 2014
Arts and Entertainment
Ian McKellen as Gandalf in The Hobbit: The Battle Of The Five Armies
film
Arts and Entertainment
Sarah Koenig, creator of popular podcast Serial, which is to be broadcast by the BBC
tvReview: The secret to the programme's success is that it allows its audience to play detective
News
Ruby Wax has previously written about her mental health problems in her book Sane New World
people
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Marketing Services Manager - (communications, testing, DM)

£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...

Guru Careers: Finance Account Manager

£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...

Ashdown Group: Java Developer - Hertfordshire - £47,000 + bonus + benefits

£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...

Ashdown Group: Direct Marketing Manager - B2C, Financial Services - Slough

£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas