Kurt Björklund leaves UK for Switzerland amid tax changes

Kurt Björklund, the executive chairman of Permira Holdings, has recently relocated from the UK to Switzerland, joining a growing number of high-net-worth individuals responding to recent tax changes initiated by the Labour government. This shift reflects a trend among prominent financiers as they seek more favorable tax conditions.

The Labour government has introduced higher taxes on wealth, including the abolition of non-domiciled tax status and an increased tax rate on carried interest earnings for private equity managers. These measures have prompted significant individuals within the financial sector to reassess their residency and tax obligations.

According to reports, Björklund’s relocation aligns with similar decisions made by notable figures in the industry. Among those who have also moved abroad are James Brocklebank of Advent International, who has opted for Luxembourg, and Lakshmi Mittal, the steel magnate, who has chosen Switzerland for its low tax jurisdiction.

Permira, headquartered in central London, is a leading British private equity firm. With more than 100 portfolio companies across various sectors, including technology, consumer goods, healthcare, and services, the firm remains active in the London market. In 2021, it executed a significant £2.3 billion acquisition of JTC, a Jersey-based fund and corporate services provider.

The firm has also been noted for its public listing of Dr Martens, which has seen a steep decline in share price since debuting on the market. The changes in tax policy announced by Chancellor Rachel Reeves are intended to shift the financial burden towards those with greater means, aiming to generate an additional £26 billion for public finances.

As the government continues to implement its new fiscal strategies, the movement of high-profile individuals like Björklund raises questions about the long-term impacts these policies may have on the UK’s financial landscape. Individuals are classified as tax residents by HM Revenue & Customs if they spend 183 or more days in the UK during a tax year.

This year’s tax list reveals that the Done brothers, founders of the bookmaker Betfred, have made substantial contributions to public finances, amounting to over £400 million. Overall, the top 100 contributors have collectively raised £5.8 billion, highlighting the significant economic impact of a select few individuals.