Private Equity Managers Risking Own Capital Will Avoid Labour Tax Hike, Reeves Says.

Private equity managers who put their own capital at risk will be exempt from the Labour Party's proposed tax increase on private equity fund managers, according to Rachel Reeves. The Labour Party plans to change the taxation treatment of carried interest, a portion of profits from an investment shared by select employees in a private equity fund, to be taxed as income rather than capital gains. Reeves stated that if managers are risking their own capital, it is appropriate for them to pay capital gains tax. The proposed changes aim to raise £565 million annually for various initiatives, including mental health services and support for disaster victims. [Extracted from the article]