TaxCorporate TaxBuyout bosses ‘pay less tax than cleaners’

Buyout bosses 'pay less tax than cleaners'

Senior private equity figure makes rare tax concession, saying CGT rate is lower than a cleaning lady's

A senior private equity figure has criticised lax capital gains rules that
allow industry chiefs to ‘[pay] less tax than a cleaning lady’.

Nicholas Ferguson, the chairman of SVG Capital, made the comment in an
interview with
the
FT
today. The comments are unusual, with the industry having
battened down the hatches since trades unions launched attacks on their tax
status.

The rules allow capital gains on shareholdings to fall to 10% after two
years.
‘I have not heard anyone give a clear explanation of why it is justified,’
Ferguson said.

The comments will almost certainly give rise to calls for the government to
change the tax status of private equity.
A
review
is currently underway of the treatment of debt and equity in buyouts.

Further reading;

Read
the FT story

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