LONDON (Reuters) - BlueCrest Capital, one of Europe's biggest hedge fund firms, has moved its headquarters to Guernsey as the freewheeling industry changes where it is based in order to avoid tax rises. The firm, which runs $15.5 billion in assets and which recently opened a trading office in Geneva, has moved two partners to Guernsey and plans to recruit several more staff there, although it doesn't plan to move any traders there, it said in a letter to clients obtained by Reuters.

Tax lawyers said BlueCrest's new structure would help it pay less tax, both corporate and personal.

"It's clearly motivated by corporate tax planning," said John Langan, partner at law firm Withers.

BlueCrest declined to comment on the tax implications of the move, although in the letter it said its new structure would "enhance the group's ability to recruit and retain the best talent".

A number of hedge fund executives have threatened to quit the UK over the rise in income tax on high earners to 50 percent, which came into force this month, while some firms have opened branches in Switzerland, where individuals can pay less tax.

BlueCrest plans to have around 70 employees, mostly investment professionals, in its Swiss office by the end of the year, including a large part of its systematic trading business.

Brevan Howard, Europe's biggest hedge fund firm, has also opened an office in Switzerland.

Other firms, meanwhile, have moved their tax registration abroad, including for instance fund management firm Henderson Group, which in 2008 said it would move its tax registration to Ireland to take advantage of lower tax rates.