U.K. Government Plans Tax Crackdown on Carried Interest
ByThe U.K. government expects to make more than 1 billion pounds in the next five years from clampdown on the tax treatment of the share of deal profits pocketed by private equity executives known as carried interest.
Carried interest is typically taxed at the rate of capital gains tax in the U.K., which is set at 28%. As part of Wednesday’s Summer Budget, government department Her Majesty’s Revenue and Customs said it would be clamping down on tax deductions that allowed private equity executives to pay less than the rate of capital gains tax.
A policy document released Wednesday said that the measure would make “the tax system fairer” and was designed to make sure that “planning tools” designed to reduce carried interest tax bills weren’t effective. The measure will affect several thousand individuals in private equity firms and the investment management sector, the policy document said…
U.K. Government Plans Tax Crackdown on Carried Interest
