Closing the carry ‘loophole’ could open a set of bigger problems
Debates on increasing tax on carried interest shouldn’t ignore the wider contribution private equity brings to economies.
Expert analysis by Carmela Mendoza
Profit sharing is at the heart of the private equity incentive model. If the UK opposition Labour Party is voted in on 4 July, as it is widely predicted to be, private equity professionals who receive carry may end up receiving less of that share.
Just how much less is unclear. Labour’s election manifesto published last week, states that...