UK Scraps Proposed Rules for Carried Interest Tax Break (1)

The UK is scrapping a plan to require private equity general partners to meet minimum co-investment and timing requirements in order to qualify for a tax break on the new carried interest tax regime.

Scores of firms weighed in with criticisms of the proposal, ultimately convincing the Treasury to pull it, the government said Thursday in releasing results of its consultation.

Businesses, advisory firms, academics, and others raised concerns that the plan would make UK private equity fund managers less competitive and encourage investors to start funds in other countries where the requirements didn’t exist.

Comments also said that implementation ...