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Aberdeen Asset Management is rumoured to be fleeing the granite city for tax reasons. It's also announced its intention to axe staff.

The government’s plans to up the rate of capital gains tax have been met with resistance, and Aberdeen becomes the latest firm to threaten an exodus from the UK, according to the Times.

It also plans to reduce staff costs across the firm by at least £15m. Aberdeen Asset Management is based across Aberdeen, Edinburgh and London, but it’s not clear where the cuts will occur.

However, if fund managers north of the border were to find themselves out on their ear, would they be welcomed by any of Scotland’s other fund management players?

Joanna Black, partner at headhunters Black Appointments, thinks the mediocre might struggle: “The chances are they won’t be letting go of their star performers, so those made redundant might find it tough at the moment.”

And whether the fund managers working in Aberdeen or Edinburgh will want to up sticks to a tax haven like Dublin, the Cayman Islands or Bermuda is another matter. Aberdeen Asset Management could well find its top talent firmly rooted in Scotland.

David Hill, of recruiters Nelson Scott, reckons it’s a tight market in Scotland at the moment, with Scottish fund managers simply replacing staff, rather than aggressively increasing headcount as was the case six to 12 months ago.

“Staff generally stay with the firms for a relatively long time, mainly due to a lack of other options,” he says.