Tag: Carried Interest - Tax Policy Associates

Posts tagged "Carried Interest"

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o find a solution,

Perceived problems of the ~-

BVCA that would not involve them in taking their .
e The result is a structure that is

and probably capable of

voidance purposes in ways that have

not yet come to light. None of this is intended as any

criticisn of those involved with the 1987 arrargements,

but I think that we should try to avcid gaing down the

same road again, and it follows that TO do not

Oct 6, 2023 Analysis

Did the Good Law Project just kill carried interest?

The “carried interest loophole” means private equity executives pay tax at the low, low, capital gains rate of 28%, and not the 47% rate that an equivalent banker would pay. Earlier this year I wrote a slightly controversial paper, published in the British Tax Review, which suggested that the loophole didn’t actually exist. I said […]

British Venture
Capital Association

Statement approved by the Inland Revenue
and the Department of Trade and Industry
on the use of limited partnerships as
venture capital investment funds

26 May 1987

Mar 10, 2023 Investigations

Carried interest – the £600m loophole that doesn’t actually exist

Private equity fund managers pay only 28% tax on their income – the “carried interest loophole”. This wasn’t created by legislation, but by an impressive piece of lobbying in 1987 which resulted in an agreement between the industry and HMRC. A new analysis shows that the 1987 agreement is unlawful; there is no loophole, and the correct legal position is that most fund managers should pay tax at the full marginal rate of 47%.