Activist hedge fund Parvus Asset Management, which manages about $11bn and counts Chris Hohn’s TCI Fund Management among its minority investors, has moved core investment management activities from London to Jersey, according to a report by Bloomberg.

The moves comes as the UK government tightens its tax regime for high-net-worth residents and fund managers.

Regulatory filings show that Parvus registered a new entity in St Helier last September, before transferring investment management functions from one of its key UK vehicles earlier this year. Founder Edoardo Mercadante directly owns the Channel Islands operation, which is now taking on a larger role in running the firm’s portfolio.

The restructuring comes against the backdrop of UK Chancellor Rachel Reeves’ push to increase fiscal revenues, including curbing the favourable “non-dom” tax regime that previously allowed foreign-born residents to shelter overseas income for up to 15 years. Under the new rules, relief is shorter-lived and inheritance duties extend to international assets, sparking an exodus of wealthy financiers to lower-tax jurisdictions.

Jersey, which imposes no capital gains or inheritance taxes and offers preferential corporate rates for asset managers, has long been a hub for hedge funds. Brevan Howard, Man Group, Taula Capital and Michael Hintze’s Deltroit Asset Management are among firms with operations there.

Mercadante, who launched Parvus in 2004 after a stint at Merrill Lynch Investment Management, has also stepped down as a director of several UK entities, though some Parvus companies remain registered in Mayfair offices shared with TCI.