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
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.