Brown vows to review private equity tax

Future PM Gordon Brown today promised workers that he would review the
perceived tax advantages enjoyed by wealthy private equity executives after
criticisms that in some case these executives were paying less tax than manual

Answering a question from the floor at the GMB Union’s annual congress in
Brighton today, Brown said the government would ‘deal with this very important
issue’ and ‘make sure there is justice and integrity’.

His answer follows attacks on the way private equity executives are taxed
from former Marks & Spencer chairman
Paul Myners
. Private equity bosses pay low tax on carried interest, as this is treated
as an unlisted security. In some cases this means they can end up paying less
tax than cleaning staff.

A Treasury
spokesman said it had already launched a review into private equity and
would continue with this work.

‘Work on the review is ongoing, and will conclude in due course,’ the
spokesman said.

welcomed Brown’s comments enthusiastically.

‘Cleaners in the UK will be delighted to hear that the Treasury is
considering whether the multi-millionaire elite who run the private equity
industry should continued to enjoy a lower tax rate than cleaners and if so what
is the justification for this,’ GMB general secretary Paul Kenny said in a

Further reading:

Former M&S chairman slams private equity tax rules

ICAEW head of corporate finance defends private

CBI warns against private equity clampdown

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