The Labour party’s recent budget has led private equity bosses to express jubilation over the tax policy reversal on carried interest, which protects their substantial profits.
Rachel Reeves' initial plans to raise significant funds through taxing carried interest were scuttled after lobbying efforts from the private equity industry influenced a more lenient tax increase.
Originally proposed was a new tax on carried interest intended to bring in £565m annually for mental health and legal aid, but was significantly reduced after pushback.
The resulting tax change will now yield only £300m by 2030, dramatically less than the initially promised funds in the Labour manifesto, reflecting the industry's considerable lobbying success.
Collection
[
|
...
]