High earners considering getting around next year’s 50p tax rate by converting income into more lightly taxed capital gains are being lured by the “glister of fool’s gold”, a senior Revenue official said on Wednesday.

Dave Hartnett, permanent secretary for tax for Revenue & Customs, pledged action against avoidance schemes, which are one reason why the Treasury expects to collect only 30 per cent of the potential yield from the 50p rate.