Summer Finance Bill—taxation of carried interest

Table of contents

• Original news
• What changes are being made to the taxation of carried interest and from when do they apply?
• What is the ‘base cost shift’ and how will its use be affected?
• Does the draft legislation contain any further information about how the measures will work, and do any uncertainties remain?
• Who will the changes impact the most?
• Were the changes expected, and how is the industry reacting?
• Are there any other changes in the Summer Budget of relevance to private equity and other investment funds?
• What impact could all the changes have on the structuring of returns from such funds and the use of limited partnerships?

Article summary

Tax analysis: How is the industry reacting to the new rules governing the taxation of carried interest? Tom Cartwright, partner at Pinsent Masons, considers the likely impact of the changes on lawyers and their clients.