Britain’s Labour Party is coming for the low tax enjoyed by private equity managers. There will be overcooked threats of executive flight and a loss of investment in the UK. But the pain might be less than the industry fears — the fine details are still scant.

Rachel Reeves, the likely finance minister if Labour wins the general election in July, could still be cautious about how sharply she raises tax rates on the industry’s performance-linked pay. Her plans won’t be fully clear until the autumn budget, and she’s expected to consult with private equity lobbyists and bosses before then. Reeves needs private investment to help get the economy moving, and Labour has promised to look out for Britain’s competitiveness in finance. So she could look for a practical middle-ground solution that makes the levy fairer but doesn’t lead to a painfully sharp jump to full income tax levels immediately.

QOSHE - Labour Party Is Right to Make Private Equity Pay Fair Tax - Paul J. Davies
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Labour Party Is Right to Make Private Equity Pay Fair Tax

3 1
14.06.2024

Britain’s Labour Party is coming for the low tax enjoyed by private equity managers. There will be overcooked threats of executive flight and a loss of investment in the UK. But the pain might be less than the industry fears —........

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