ABI calls for private equity tax reform
Investor group says scrapping relief on carried interest will fund cuts to stamp duty on shares
Peter
Montagnon , director of investment affairs at the ABI, has said
that the government should consider scrapping the tax relief on carried interest
in order to fund a cut on stamp duty on share trading.
Writing to the FT
, Montagnon said that such a move would even out tax benefits
between buy-out firms and publicly listed companies.
‘A trade-off between stamp duty and the taxation of private equity would help
create a more balanced playing field between private equity and the listed
sector,’ said Montagnon.
His comments follow criticism of the tax benefits enjoyed by private equity
executives, who receive a significant percentage of their remuneration via
carried interest, which attracts taper relief.
Unions and other
business figures have questioned why such wealthy individuals should receive tax
benefits that others do not qualify for.
Further reading:
Brown vows to review private equity tax
Former M&S chairman slams private equity tax rules
ICAEW head of corporate finance defends private equity