The government expects to make over £1 billion over the next five years from a 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 UK, which is currently set at 28%. As part of today's Budget, the Government announced that it would be clamping down on tax deductions that allowed private equity executives to pay less than the rate of capital gains tax.