Bluecrest, one of the largest hedge fund firms in the UK, is moving 50 of its highest-earning traders and fund managers to its new offices in Geneva before the UK brings in its new 50 per cent income tax on high earners at the start of April, according to the The Times (of London).

The hedge fund business, overseeing $16.7 billion of assets under management, is moving to Switzerland at a time when the financial services industry has been worried that higher UK taxes will drive business from the country. The new 50 per cent tax, applying to those earning £150,000 ($244,500) a year and above, kicks in on 6 April. Once the impact of pension allowances and other adjustments are taken into account, the marginal rate of income tax on top earners is above 60 per cent.

Another fear is that proposed new European Union regulations on hedge funds – a sector blamed for helping aggravate the recent financial crisis – will drive such businesses outside the EU and into places such as Switzerland.

The migration of business to Switzerland could help offset some potential losses sustained by Swiss banks as a result of international pressure by major governments to try and breach centuries-old Swiss bank secrecy laws.