Labour To Close Tax Loophole For Thousands Of Private Equity Investors

10th June 2024

Labour is set to close a loophole that enables thousands of private equity investors to avoid paying income tax if it wins the general election.

The Sunday Times reported that the party's election manifesto, due this week, is expected to outline plans to put a halt to money made in private equity deals being taxed as capital gains at a 28 per cent rate, rather than income at a rate of 45 per cent.

This "carried interest", as it is known, is seen as a return on investment rather than income under the current system.

Shadow chancellor Rachel Reeves has estimated that she could raise up to £440m by changing the tax system on these deals.

Read the full article at Yahoo Finance

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