Tax - Corporate

During its general election campaign, the Labour Party pledged to abolish the carried interest tax "loophole" but did not provide any further policy detail. However, on 29 July, as part of the Chancellor's statement on public spending pressures, the new Government launched a call for evidence on the tax treatment of carried interest. The call for evidence makes clear that the government is seeking to take "decisive action", but also to "protect the UK's position as a world-leading asset management hub". For more detail, please see our briefing.

Travers Smith, together with the industry associations on which we sit, responded to the call for evidence, which closed on 30 August. A further government announcement on the tax treatment of carried interest is expected at the Budget scheduled for 30 October.

As discussed in our previous edition, in the Spring Budget, the last Government announced the abolition, from 6 April 2025, of the current tax regime for UK resident but non-domiciled individuals ("non-doms") and its replacement with a residence-based regime. 

On 29 July, as part of the Chancellor's statement on public spending pressures, the current Government, in a policy paper, confirmed that it would retain most of the key elements of those planned non-dom reforms but indicated that there would be some significant changes. For more information, please see our briefing.