Private equity firms that sell assets quickly could face higher tax bills in the UK, according to a report in which the government outlines how it wants to change the taxation of profits on buyout deals.

In his July 2015 Budget, the UK Chancellor of the Exchequer George Osborne said the government would take a closer look at tax on deal profits in private equity. The government has since been consulting on rules to determine whether these gains, known as carried interest, should be taxed as capital gains (28%) or as income (45%).