Changes to the tax treatment of carried interest (to the detriment of fund managers) are becoming a regular feature of Finance Acts. Yesterday’s draft Finance Bill clauses will continue the trend by implementing last July’s proposals to tax some carried interest and other performance incentives as trading income where the fund does not hold its … Continue reading HMRC v. Carried Interest: Round 3
Gains arising on or after today via carried interest are subject to new computational rules. Essentially, an affected individual will be taxed by reference to the full amount received less any sums actually invested by that individual. Whilst a capital gains treatment is preserved, it is intended that gains will be calculated in line with … Continue reading Carried interest – raising the effective rate of capital gains tax
In our earlier blogs here and here, we reported on draft Finance Bill legislation which would potentially have resulted in income tax on private equity managers’ coinvestments in the funds they manage. Fortunately it transpired that this was a case of “cock-up before conspiracy” (probably due to lack of industry knowledge on the part of the draftsmen) and the revised clauses … Continue reading Disguised investment management fees: panic over?