Hedge fund managers angered by the UK Government's proposal to increase income tax have begun to look at changing their remuneration structures, in the same way that private equity executives have been doing, as revealed by Financial News this week.

Managers have been picking up the phone to their tax advisers to see what can be done after the UK Chancellor Alistair Darling proposed in his April Budget to increase the top rate of income tax from 40% to 50% for those earning £150,000 or more.