Carried Interest – Alessandro Belluzzo comments on the British government’s intention to raise the Capital GainsTax
Alessandro Belluzzo comments on the British government’s intention to raise the Capital GainsTax and, in particular, to act on the ‘Carried Interest ” – the tool to encourage the remuneration of private equity fund managers, to restore public accounts.
“Carried interest payments are currently taxed at a special capital gains tax rate of 28%, which, although higher than the normal capital gains tax rate of 20% (10% if entrepreneurs’ relief is available) is significantly lower than the income tax rate of 40% for higher rate taxpayers (for income between £50,000 to £150,000) and 45% for additional rate taxpayers (for income above £150,000).
The Government is of course looking for ways to raise tax revenue in a way in which is politically acceptable. It is to be seen just how far this reform can be stretched, without causing political tourmoil and loss of confidence in the City”.
Download and read more – Il Sole24Ore
Read more – The Financial Times Here
