The Tax Treatment of Carried Interest – Call for Evidence, Public Sector article

The Tax Treatment of Carried Interest – Call for Evidence

Read the full outcome

The Tax Treatment of Carried Interest - Government Response and Policy Update (June 2025) (Accessible)

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The Tax Treatment of Carried Interest - Government Response and Policy Update (June 2025)

PDF, 148 KB, 21 pages

The Tax Treatment of Carried Interest – Outcome (October 2024)

PDF, 180 KB, 28 pages

Detail of outcome

At Autumn Budget 2024, the Chancellor of the Exchequer announced the government’s proposals to reform the tax treatment of carried interest. The government also launched a consultation on potential new qualifying conditions for the revised carried interest tax regime that closed on 31 January 2025. The ‘Government Response and Policy Update’ document summarises the responses to the call for evidence and sets out the government’s position. It also provides a wider update on the implementation of the revised regime following discussions with stakeholders.

Before that, an earlier call for evidence closed on 30 August 2024. The ‘Outcome’ document summarised the responses to the call for evidence and set out the government’s next steps.

Original call for evidence

Summary

The government has published a call for evidence, inviting views from stakeholders on its plans to reform the tax treatment of carried interest.

This call for evidence ran from
4pm on 29 July 2024 to 11:59pm on 30 August 2024

Call for evidence description

On 29 July, the Chancellor of the Exchequer announced a commitment to take action in respect of the ‘carried interest’ loophole. Carried interest is a form of performance-related reward received by fund managers, primarily within the private equity industry.

This call for evidence confirms the government’s intention to take action against the carried interest loophole, and forms the basis for detailed engagement with expert stakeholders. It also sets out a series of areas where we would particularly value input from stakeholders.

Documents

The Tax Treatment of Carried Interest – a call for evidence