Evening Standard – Krom River, which has £453 million in assets, said it was moving to Switzerland, known for its low tax regime.

The fund is one of the few to perform well in the credit crunch and would see its partners’ income tax rate fall from 40 per cent to 10 per cent with the switch to the small town of Zug, south of Zurich.

The move makes the firm the latest to quit London for lower tax regimes. It came as HSBC fuelled fears of an exodus of leading companies. Three FTSE250 firms disclosed last month that they were leaving London.

The disclosure by Britain’s biggest bank that it was reviewing having its headquarters in London will heap more pressure on the Government to end uncertainty over its tax policies. Key tax concerns include government proposals to begin taxing "non-domiciled" foreign staff.

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Wealth Bulletin- US hedge funds keen to support their European client bases are looking at expansion into London. Institutional Credit Partners Capital and Silver Creek have made the move.

Despite predictions that the UK’s non-domiciled tax regime would lead to hedge funds migrating to other European destinations, London remains the hedge fund centre of Europe, handling some 75% of Europe’s $300bn hedge fund assets.

Setting up in the UK poses challenges for unwary US firms – and those coming unprepared may be in for a rude awakening. US hedge funds are generally accustomed to an “employment at will” legal system – hiring and compensating employees without formal written agreements and firing them without any reason (bar discriminatory ones) or any form of prior disciplinary action or dismissal procedure. This is not the case in the UK.

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