Taxation on carried interest rate rises to 32% after UK Budget

Increase in CGT on carried interest is largely welcomed and seen as lessor of two evils. However, switching to the income tax regime is expected in 2026.

There has been much debate on how carried interest should be taxed. UK Chancellor Rachel Reeves has now announced a 4% increase, much less than signaled in the Labour Party’s manifesto published earlier this year. Labour had pledged to close the “carried interest loophole” that sees carried interest as a

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