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‘Back from the brink’: Private equity’s lobbying effort on carried interest pays off

Buyout bosses get a tax hike in the Budget, but things could have been much worse, insiders say

Rachel Reeves said it was time for ‘a fairer approach to the way carried interest is taxed’, but stopped short of a rise that would match income tax rates
Rachel Reeves said it was time for ‘a fairer approach to the way carried interest is taxed’, but stopped short of a rise that would match income tax rates Photo: Bloomberg via Getty Images

Private equity bosses are about to be hit with bigger tax bills, but months of fervent lobbying ensured the that Budget was not as bad any many feared.

Carried interest — the share of profits paid to private equity managers on deals — is currently levied as a capital gains tax charged at 18% (basic) and 28% (higher). 

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