Private equity player admits taxes too low
Industry professional makes first public admission
In the aftermath of the resignation of
Peter
Linthwaite, chief executive of the British
Private Equity and Venture Capital Association (BVCA), Peter Taylor,
managing partner of Duke Street
Capital has publicly admitted that tax rates for private equity firms are
‘unnecessarily low’.
A report in the Daily Telegraph quoted Taylor ‘speaking
independently’ as saying tax rates could be higher without unduly harming
investment.
Taylor said he also believes the two-year period of taper relief could be
extended.
He added though that the issue relates to ‘the whole of capital gains tax,
not just private equity’.
‘The point should be whether people are taking genuine risks and have to
perform well over a number of years. If you are, then you deserve to get that
sort of treatment,’ he said.
Further reading:
Private equity body boss resigns in tax row
Brown ‘ready to stamp out private equity tax breaks’
Private equity facing ‘Custer’s last stand’ say unions