- The government ran an initial call for evidence on the tax treatment of carried interest between July and August 2024.
- A summary of responses was published at the Autumn Budget 2024, with an announcement that from April 2025 carried interest would be subject to a special rate of capital gains tax of 32%.
- From April 2026, a new revised tax regime will be implemented to bring the taxation of carried interest within the income tax framework, subject to tax at approximately 34%. Certain elements of the new regime were subject to a consultation, launched at the Autumn Budget.
- In June 2025, HM Treasury published the outcome of this consultation and provided an update on the implementation of the revised tax regime for carried interest.
- Timing: draft legislation is expected to be released for technical consultation before Parliament’s summer recess.
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