The founder of Direct Line and Esure is weighing up a move to Jersey in an effort to dramatically reduce his tax bill.

Multimillionaire Peter Wood whose wealth is estimated at £500m has been scouting out potential homes on the tax haven Channel Island, according to reports on Sky News, refuelling the debate about the government's treatment of the UK's super rich.

The 65-year-old is currently considering either giving up his 55% stake in Esure by selling or floating the insurance group on the London Stock Exchange, following a successful flotation of his former brainchild, Direct Line.

Taxes paid by the companies would be unaffected by Wood's relocation but the insurance tycoon himself would be able to save tens of millions of pounds in personal tax, should he move to the British Crown Dependency. Since he created Direct Line, Woods is believed to have paid more than £50m in taxes to the Exchequer.

Speaking to Sky News, a source close to Wood, said: 'His companies have always been based in the UK and paid UK tax. It is natural that he is examining ways to preserve some of the personal wealth he has created.'