The taxman may be planning a clampdown on artificial schemes to beat next year’s 50% tax rate, but there will still be plenty of legitimate ways to avoid the hit.

Thousands of higher earners are expected to simply retire early, work less or even move abroad to escape the new top tax rate on incomes above £150,000.

Those who want to continue working full-time in the UK are expected to look for ways to bring their taxable income below the £150,000 threshold, by taking benefits where possible from their pre-tax salary through “salary sacrifice” schemes.

Bonus-earners, meanwhile, are increasingly likely to ask to be paid in part through company shares, because gains on these would attract capital-gains tax (CGT) at a flat rate of 18%, rather than income tax at a rate of 51% including National Insurance contributions — a 23% tax saving.

Capital-gains tax also attracts a £10,100 tax-free allowance — income, by contrast, qualifies for an allowance of only £6,475.

We outline legitimate ways to cut your tax.

Executive share schemes

Executives who usually take bonuses may choose to participate in a share-based arrangement instead.

Suppose someone is due a £50,000 bonus. He could instead agree to purchase shares at £100,000 on anticipation of them rising sharply, but not pay any cash until later.

If he buys the shares when they are worth £150,000, he can buy and sell immediately for a profit of £50,000. This would be taxed as a capital gain at 18%, or £27,000, rather than income at 50%, or £75,000.

However, the risk is the shares fall in value and he makes nothing. It is thought the Grant Thornton scheme (referred to in Inland Revenue target top-rate tax avoidance - see related links left) would fail the test, because it is structured to remove the risk, potentially deeming it a form of financial engineering.

David Kilshaw, of KPMG, the accountancy firm, said: “The Revenue is generally happy with this as it’s a commercial decision as to whether you take the shares. They will clamp down, however, on those schemes where you’re trying to achieve a gain without risk.”