Reforming Carried Interest

Private capital is of significant and growing importance to the UK, both as a source of vital investment for UK projects but also as an industry that is itself a key component of the UK's financial services sector.

Currently, London is second only to New York as the world's leading private capital hub. That status has been earned over many years and is the result of a confluence of factors, one of which is the tax treatment of private capital executives.

Post-Brexit, the UK is facing huge competition for private capital talent from other European countries. Those countries have scented an opportunity and have been seeking to seize it by improving their regimes for the private capital industry. To date, the vast majority of executives have remained in the UK but that position is not guaranteed.