Simon Goldring, Private Wealth and Tax Partner at Excello Law, has extensive experience advising high-net-worth individuals on tax planning and wealth management. Known for his expertise in navigating complex tax regulations and providing strategic counsel, Goldring is a sought-after advisor in the private wealth sector. Recently, he has commented in Jessica Clark’s article for the Daily Mail on the emerging trend of London’s private equity bosses contemplating a relocation to Milan. This shift is driven by concerns over Labour’s proposed tax increases, particularly targeting fund manager bonuses.
Fears Over Labour’s Tax Plans
Labour’s proposed tax policy, which aims to increase the levy on fund manager bonuses to as much as 45%, is causing significant unease among private equity professionals in London. The party’s campaign promise to target private equity is fueling fears of more taxes on the wealthy. With opinion polls pointing to a potential landslide victory for Labour, the prospect of higher taxes is becoming increasingly likely.
The Appeal of Milan
In response to these concerns, private equity clients are increasingly seeking advice on moving to Italy. Milan, in particular, has emerged as a prime destination due to its attractive tax regime and perceived political stability under Prime Minister Giorgia Meloni. Italy offers a flat tax rate for foreign residents, meaning they would pay €100,000 (£84,660) on overseas earnings. This flat rate is especially appealing compared to the potential tax hikes in the UK.
Expert Opinions on the Move
Marco Cerrato, a partner at Maisto e Associati, whose firm assists clients with relocation to Italy, mentioned, “We are trying to deploy as much resource as we can.” This statement highlights the growing demand for relocation services among private equity professionals.
Peter Ferrigno, a tax director at Henley and Partners, echoed these sentiments, stating, “UK nationals are worried about what a Labour government might do to private equity carried interest.” This worry is evident as major investment firms such as Capstone Investment Advisors, Eisler Capital, and billionaire Steve Cohen’s Point72 Asset Management have already set up in Milan.
Milan’s Advantages
Milan not only offers favorable tax conditions but also boasts a high quality of life. The city is home to renowned international schools and is conveniently located near seaside towns, lakes, and Alpine ski resorts. These factors make Milan an attractive destination for those looking to relocate.
Additionally, political uncertainties in France and Germany have made Milan a more stable choice compared to other European cities like Paris and Frankfurt. Emmanuel Macron’s snap election in France has led to concerns over potential victories by the hard-right, while Italy’s hard-right leader, Giorgia Meloni, is perceived as providing more stability.
Impact on the Market
The uncertainty surrounding Labour’s tax plans has already had a tangible impact on the market. Listed private equity companies experienced a dip, with shares in 3i and Petershill Partners falling by around 1%. The potential tax increases are also causing concerns among the super-rich, who are wary of Labour’s plans to move faster and further than the current government.
Private Equity Hotspot
Simon Goldring notes that the possibility of changes to the taxation of carried interest is prompting private equity bosses to consider Milan. The Italian ‘res non-dom’ regime, aimed at attracting wealthy individuals to become tax residents in Italy, is a significant draw. With approximately 2,200 millionaires expected to move to Italy this year, Milan is solidifying its status as a hotspot for private equity executives fleeing London’s uncertain tax landscape.
As the political and economic environment continues to evolve, the trend of private equity professionals relocating to more favorable jurisdictions is likely to persist. Milan’s blend of favorable tax policies, high quality of life, and political stability positions it as a top choice for those seeking a stable and advantageous environment for their wealth.
#PrivateEquity #TaxPlanning #WealthManagement #LabourTaxPlans #MilanMove #FinancialStrategy #GlobalRelocation #Investment #PrivateWealth #TaxLaw #EconomicPolicy #PoliticalStability #HighNetWorth #RelocationServices #InternationalTaxPlanning
