There appears to be a growing consensus that the current rate of tax on carried interest is too low, and so some change to the rules is likely in the near future. Potential options include introducing new legislation to specifically tax carried interest as income, expanding the definition of employment-related securities (ERS) or, more radically, aligning the tax treatment of income and capital gains. Whatever the solution, a balance will need to be struck between complexity and ‘fairness’.
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There appears to be a growing consensus that the current rate of tax on carried interest is too low, and so some change to the rules is likely in the near future. Potential options include introducing new legislation to specifically tax carried interest as income, expanding the definition of employment-related securities (ERS) or, more radically, aligning the tax treatment of income and capital gains. Whatever the solution, a balance will need to be struck between complexity and ‘fairness’.
If you are not a subscriber, subscribe now to read this content.
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