Private equity player admits taxes too low

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