UK’s Reeves Reviews Approach to Closing Private Equity Tax Break
- Treasury finds closing loophole could cost more than it raises
- Labour was targeting £560 million from making the tax change
Rachel Reeves
Photographer: Anthony Devlin/BloombergBritain’s Chancellor of the Exchequer Rachel Reeves still intends to close a tax break for private equity, but is reviewing her approach to maximize the revenue raised, according to a person familiar with her thinking.
Britain’s Labour government wants to close a loophole on carried interest — fund managers’ portion of profits on asset sales — but internal Treasury analysis shows that could end up costing the exchequer money, said the person, asking not to be identified as the matter hasn’t been made public. Reeves always planned to look at the detail of the policy when she was in office, so the review does not constitute a U-turn, the person said.