BlueCrest Relocates To Guernsey

by Robert Lee, Tax-News.com, London

15 April 2010

BlueCrest Capital Management – London’s third largest hedge fund manager – has relocated to Guernsey, according to a letter sent to investors.

In the letter, obtained by the Financial Times this week, the USD15.5bn firm said it had formally made the move to Guernsey on April 1, just days before the UK government’s introduction of a 50% top income tax rate for those earning GBP150,000 or more a year.

Michael Platt, the firm’s founder, said that several issues had triggered the decision, including the forthcoming European Union’s Alternative Investment Fund Managers (AIFM) Directive. In comments to UK newspapers, Platt said that the Guernsey office would be run by two members of staff, thus falling outside the scope of the Directive. The remainder of the firm’s employees are expected to relocate to Geneva, Switzerland, to avoid the UK's 50% income tax rate.

Guernsey – which is outside of the EU – operates a ‘Zero-10’ corporate tax regime. This is being reviewed but currently all companies pay a zero rate of tax, except banks which are taxed at a rate of 10% on some elements of their activity.

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