The UK tax authority could face a legal battle over how it taxes private equity managers, following pressure from a nonprofit legal action group and a UK businessman to increase rates.
His Majesty’s Revenue and Customs has been issued a legal challenge by nonprofit law firm Good Law Practice Ltd on behalf of UK electricity company owner Dale Vince in an attempt to end taxation of carried interest—the profit that fund managers receive from asset sales—as a capital gain at 28% instead of income at above a 40% rate.
The current approach was agreed between HMRC, then the UK’s Inland ...
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