UK Seeks Input on Plan to Revamp Carried-Interest Tax Treatment

UK authorities confirmed their plan to reform the tax treatment of carried interest and are seeking input on the subject.

His Majesty’s Treasury issued a call for evidence Monday on carried interest, which allows fund managers in the private-equity industry to have some of their compensation taxed at lower capital-gains tax rates.

The nation’s newly elected Labour Party government has telegraphed for weeks its intention to close the so-called carried interest loophole. Carried interest should be reformed, HM Treasury said Monday, because “the current tax regime does not appropriately reflect the economic characteristics of carried interest and the level of ...