<ul><li>Private equity executives paying less tax than low-paid workers has been a long-standing issue.</li><li>While the tax rate on carried interest will increase to 32% from April 2025, it will be taxed within the income tax framework from April 2026 with bespoke rules.</li><li>The move is seen as a lobbying triumph for the British Venture Capital Association.</li><li>Critics argue that carried interest should be treated as income, as partners in private equity firms risk relatively small personal capital.</li></ul>

Rachel Reeves’s most irritating manifesto fudge: private equity’s tax loophole | Nils Pratley

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