UK private equity fund managers will be less competitive if the government goes through with its plan to impose new conditions for them to get favorable tax treatment, industry groups say.
The UK Treasury is moving carried interest from capital gains tax to income tax treatment, and taxing two-thirds of the interest income, starting in April 2026.
To qualify for the two-thirds tax benefit, however, managers would have to invest a minimum amount of their own money into the fund to ensure that they have a vested interest in its performance, according to a Treasury proposal. Fund managers also would …