- 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. Draft legislation for the new revised tax regime was released for technical consultation in July 2025.
- Timing: the new revised tax regime for carried interest will come into effect from 6 April 2026.
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