Sir Richard Branson, the man who started up the Virgin Group Conglomerate of Virgin Airlines, Virgin Records, Virgin Galactic along with many other businesses just changed zip codes. He is no longer a resident of the United Kingdom! What was it that drove Richard Branson out of the U.K., to claim residence in the British Virgin Islands? Was it that he was spending way too much time doing pilates on his Necker Island retreat (an island he bought in the British Virgin Islands)? Or was it that he was avoiding the U.K.’s 50% income tax rate that he would have been forced to pay as he is in the highest tax bracket?
Branson is worth $4.6 billion, and makes a considerable a income on both capital gains and income each year. With this said, the British Virgin Islands just so happens to have an income tax of 0% for all residents.
Read the article for more details.
1) What is your opinion, did Richard Branson leave the U.K. for income tax purposes? Explain.
2) What is the major consequence we see here for governments that have high income taxes?
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