Overview
Kevin Cummings, partner and UK Head of Tax at law firm McDermott Will & Emery, said:
“Yesterday’s FT article seems to trail what many in the industry had sensed from the tenor of the Government’s summer consultation with the PE industry and tax community – that some form of narrowed entitlement to capital gains tax for carry would prevail, along the lines of carried interest tax regimes more broadly across the EU – provided deal executives have more capital at risk in the fund. If the Government legislates on this basis, that would appear to be a reasonable compromise and would keep the London asset management market industry attractive in the race for talent.”
Fatema Orjela, private equity partner at law firm McDermott Will & Emery, added:
“The financial services industry is a great asset to the UK and it’s encouraging that the Government are seeking to show that we want to keep our edge and our hard fought talent. Any step taken to protect the tax treatment of those participating in the industry appropriately and fairly would no doubt be welcomed by those directly involved and serve to fuel continued value creation for the UK economy for the benefit of all.”
