TaxCorporate TaxPrivate equity association boss to go over tax row

Private equity association boss to go over tax row

British Venture Capital Association boss allegedly gave 'obstructive' evidence to MPs, and failed to respond well to union criticism - so is likely to lose his job

BVCA chief executive Peter Linthwaite is set to lose his job over the tax row
that has engulfed private equity, reports said.

The head of the British Venture Capital Association faced a bruising
appearance before MPs yesterday as the Treasury Select Committee began its look
at the industry.

The
Times
says he is set to be ousted by disgruntled industry figures who feel
the industry has been outgunned by the unions. ‘I think they’ve tried to do a
good job, but they’ve been very slow off the mark – they really need to get
their act together,’ one private equity executive was quoted saying.

The industry is likely to lose favourable capital gains tax rules, and
possibly the interest relief that helps fuel the buyouts, as part of separate
Treasury reviews,
advisers
think
.

MPs were furious yesterday at the evidence given by the BVCA and others
yesterday,
the
FT reported
.

Asked about the capital gains issue (which reduces the effective tax rate to
10% for ‘carried interest’), Jeremy Hand, the BVCA’s deputy chairman, said that
buyout bosses paid income tax at the UK rate.

‘Stop it. This is really irritating semantics,’ Sion Simon, a Labour MP,
shouted in response.

Angela Eagle MP called it ‘the most obstructive piece of evidence we’ve been
given for a long time,’ The Times reported.

Read
the FT report (subscription required)

Read
The Times report

Brown
‘read to stamp out private equity tax breaks’

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