Tories take sides in private equity tax row
Shadow chancellor says Tories will support plans to increase private equity tax but want to avoid a 'witch hunt'
George Osborne, the shadow chancellor, has said that his party supports a
hike in the tax paid by private equity bosses, the Times reports.
Osborne’s comments mark the first public statement by the Tories on the
controversial private equity issue, and come as speculation mounts that the
government will tighten up the carried interest tax rules that have caused such
a furore.
Osborne was eager, however, to end the ‘witch hunt’ against the buy-out
bosses.
‘Gordon Brown may be happy to stay silent on these things, but I think we
need to do what we can to reward proper risk-taking and draw the sting out of
this whole debate by ensuring that what looks like income is taxed as income,’
Osborne was quoted as saying.
Private Equity bosses have been lambasted for only paying 10% on carried
interest, as it is classified as a capital gain rather than income.
Further reading:
Private Equity heads fend off critics
Private equity bosses enjoy extra tax break
Find out more about
carried interest