The BBC has reported that:
Formula One superstar Lewis Hamilton is to move to Switzerland to escape the excessive public and media attention he has had in Britain over the last year.
Which must take the award for the most gullible interpretation of a press release issued this year.
The guys gone into tax exile at 22.
How sad. Is it a price worth paying?
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I guess F1 is a global business – why would it matter where he chooses to park his suitcase?
Alasatair
I’m not saying he cannot park his suitcase where he wants.
But here we have a guy of 22 who is moving to a place he admits he knows almost nothing about under the pretext of an excuse to live a false life to save some of the enormous pile of cash he will be earning; a pile big enough to meet his needs forever even if taxed in the UK.
If you don’t think that’s sad and a price not worth paying then I’m as sorry for you as him. It’s not possible to live a good life as an exile. But of course, I accept in saying so that my definition of a ‘good life’ involves matters far beyond the material dimensions of living.
Richard
I wondered how Richard might parse this. I have to say that given Switzerland’s penchant for secrecy, young Hamilton should do rather well there.
What was it Max Clifford reckoned? He’d outstrip Beckham for potential earnings and wealth. No – it’s not for tax reasons at all is it? 🙄
I don’t think that “Lewis Hamilton proves that tax advice is sad”, but just that is sad if tax advice is the only or main reason for leaving your own country. A quibble perhaps!
I do despise tax exiles. I recall some Dorset peer and his wife in Paris, years ago, leading an unhappy life as tax exiles there. Tax exiles all reassure each other that they are doing the sensible thing, but there is alway something rather hollow about their protestations.
I suppose they may always be subconsciously aware of what they are missing, part of which is being part of a progressive national community that struggles to look after its weaker members in the most sensible way and is also collectively concerned about other, poorer or less prosperous countries and their peoples. Or otherwise, perhaps tax exiles are preponderantly psychopathic rather than empathetic – not caring or thinking about how life is for others.
Of course, if they are there just for the sun, or whatever, that is another matter! But to exile yourself just because you are not prepared to pay the tax that others pay in your own country! Poor little rich people!
I understood that a number of the more sucessful F1 guys lived in Monaco, and they certainly earn enough, and earn that in many different countries, that a “tax haven” would prove attractive. You could argue that for a number of sports, but F1 is probably the only truly global sport. don’t think lifestyle comes into it – these guys spend their life on the road, travelling with the F1 circus, and I could think of a lot worse places than Switzerland to spend my spare hours under such circumstances.
But your point begs a valid question – where do you think the likes of Hamilton should be taxed Richard?
I watched an interview with Lewis last night, and as soon as he said it was for privacy I thought oh dear.
It is however a great shame, here we have a case of (as my sister would say) ‘the tax tail wagging the dog’.
Okay, so Lewis (or his advisers) feel he would be taxed too heavily in the UK, and most of his fellow team mates live in ‘tax exile’ status, so he’s doing nothing new there, but as previous comments have mentioned, what a shame to live somewhere you don’t want to, just because of tax!
In part I blame the so called tax experts, those who advise people with a bit more money than they really need.
You can only imagine it can’t you, “Hey Lewis, go live in Switzerland you’ll only pay tax at X (sorry but rates vary in Switzerland depending on where you live)”, no real consideration whether this young man wants to, or if it’s bet for him and his wellbeing.
Lewis, tax rates vary the world over, don’t let them decide how and where you live your life, you’ll earn more than most will ever see and yet we all manage to live quite well here in the UK.
Just in case you are interested Lewis here is a few personal tax rates from around the world, you never know your advisers may send you to one of these places next:
Argentina 9-35%
China 5-45%
Bulgaria 10-24%
Finland 9-32%
Hong Kong 16-20%
India 10-30%
Monaco 0% (don’t you have fellow drivers living there Lewis?)
Alastair
As I amde clear on Radio 4 this summer – I like the idea of citizenship based taxation – i.e. if you are a UK citizen you pay tax here – and for a period after renouncing as well
Richard
Oh god, here I go, agreeing with Richard again, but, I do think that sounds very fair, a citizenship taxation.