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A recent survey showed that more than one in 10 in British businesses are seriously considering moving abroad, according to the Daily Telegraph, while Alchemy Partners founder Jon Moulton (who has resigned from the firm) has said he may follow the example of Terra Firma Capital Partners founder Guy Hands and move to Guernsey to escape the UK’s recent tax hikes.

Meanwhile, a recent delegation of Swiss toured the country as part of an effort to attract the increasing number of hedge funds and private equity managers planning on relocating to a more attractive jurisdiction.

“[GPs] still have to fundamentally ask themselves where they need to be to run their business, but in these current times with technological developments being what they are, the people making the big money can pretty much move as easily as the money they make,” said Jan Birtwell, a partner in O’Melveny & Meyers’ tax practice.

There are certain practical changes that every manager should examine before deciding to move, including how establishing themselves in a different area will impact their ability to travel. “There will be some practical complications,” Birtwell said. “For example, if they are based in London they can fly very easily to most places from Heathrow or Cityd [airports], but when they are in Jersey or Guernsey, getting to New York, for example, can be more of a logistical nightmare. Switzerland may be a more suitable hub.”

Many managers may also place a major emphasis on how a move may affect their family, but Birtwell says many jurisdictions have improved their infrastructure and offer a better quality of life that might be appealing to more US managers. “So there are the kind of practical considerations – ease of business links, the kind of infrastructure they will need around them, can they get expertise locally to do whatever it is they need to do there – but I think you are finding increasingly sophisticated infrastructure in and around these jurisdictions,” Birtwell said.

On the issue of the regulatory environment, managers need to look at whether there are any requirements with which they need to comply, although Jersey and Guernsey are considered to have a comparatively light and straightforward regulatory regime. “You also need to look at the impact on the different economic relationships between the different entities within your management network, so if you are moving a certain part of your activities to Jersey or Guernsey, but leaving some in the UK, for example, you need to make sure you are still ensuring appropriate remuneration arrangements in place for the bits that you leave behind,” Birtwell said.

Managers also need to bear in mind that they will be expected to show that they have a meaningful connection to their new corporate homes.

“If you are going to set up a company in Guernsey or Jersey, that will mean ensuring that it has got enough substance in terms of its management and in terms of the business it does there,” Birtwell said.  “However, I am not aware of any specific local requirements as to saying you can only be regarded as a resident if you have X number of employees, but I think most of these jurisdictions would prefer to see that there is going to be some sort of local connection with what you do and that you are not simply going to own a house there.”