The cost of carry
22.08.2024 – Articles
Two reports from Macfarlanes lay out the arguments for retaining the UK’s competitive carried interest taxation regime while offering alternative routes to policy reform.
In two separate reports from Macfarlanes, Reforming carried interest and Inpatriates and carried interest, the authors set out arguments for maintaining the UK’s current tax treatment of carried interest.
Inpatriates: small group contributes outsized proportion of carry tax
In the case of non-doms working in private capital funds, one report highlights how much this group generates in carried interest. While 3,100 individuals generated £3.7bn of carry gains in the 2022/23 tax year, 27% of those recipients were non-doms.