Labour Risks Surprising Private Equity With Tough Tax Message
- Party expected to target carried interest in its manifesto
- Rachel Reeves has said for years she’d go after tax loopholes
This article is for subscribers only.
Attendees at private equity’s glitzy conference in Berlin last week said they were hopeful that Labour’s plans to raise their UK taxes would be modest. But, as the party’s manifesto is about to be released, the industry is at risk of being in for a nasty surprise.
Anyone hoping Labour won’t target private equity will be disappointed. On Thursday, Labour is expected to reiterate its promise to target carried interest in its election policy pledges. The party plans to close the loophole that allows private equity fund managers to pay a capital-gains tax on their investment returns, a person with knowledge of Labour’s plans said.