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United Kingdom | How the taxation of carried interest in the UK is changing

28 March 2025

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Tax Alerts, National/Federal Taxation, Global

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United Kingdom

The capital gains rate on carried interest in the UK will increase to a single rate of 32% on 6 April 2025.The UK is proposing to introduce a new regime for the taxation of carried interest from 6 April 2026.Consultations and discussions on the detail of that regime are ongoing. Executive summaryThe capital gains tax rate on carried interest in the United Kingdom (UK) increases as of 6 April 2025 to a single rate of 32% (up from 28% or 18% for basic rate UK taxpayers).In the Autumn Budget 2024, the UK Government confirmed that it would introduce a new regime...