Aberdeen Asset Management has refused to rule out shifting its official headquarters from its home city until the government clarifies the tax position of foreign earnings.

The group is reported to be giving some consideration to a move because the company fears that a government plan to simplify UK companies' payment of tax on overseas earnings could see its tax bill jump.

Locations such as Dublin, Luxembourg and the Netherlands are already popular with fund management companies because of their favourable tax regimes.

A spokeswoman for Aberdeen Asset said the group "has no intention of leaving Aberdeen whatso- ever", but on the specific issue of shifting the headquarters, she said: "Aberdeen does not have any comment to make until they see the relevant legislation."

A move might not see any change in personnel numbers in the UK. Aberdeen's Edinburgh based-team recently took on new offices in the capital's Princes Street. However, a formal shift of HQ could hit Treasury tax receipts.

The issue of UK corporate taxation has come to prominence recently following the announcement by Shire Pharmaceuticals, the UK's third-largest drugs firm, that it is moving its tax domicile to Ireland.

While Shire's group operations headquarters will remain in the UK, its holding company will be incorpo- rated in Jersey.

The headline corporate tax rate in Ireland is 12.5%, whereas in the UK the main rate is 28%.