UK asset managers have begun calling in tax advisers to work out how to deal with next April’s increase in income for the highest earners – and many are considering handing over equity stakes to their employees as a solution.

A 50% tax band on earnings over £150,000 will be introduced in the UK in April 2010. Capital gains tax currently stands at 18%. As a result, companies are looking for a way to shift employees' tax burdens from income tax to capital gains tax.