Tax experts in London have warned the management of private equity-owned companies that they could be inadvertently hit by the UK Government’s proposed clampdown on income tax avoidance, as outlined in the Budget.

In his 2010 UK Budget yesterday, Chancellor of the Exchequer Alistair Darling said there would be a consultation addressing income tax avoidance - including looking at companies that use shares, or "employment-related securities", as a method of rewarding staff to avoid paying the tax.