On July 8, the Right Honourable George Osborne MP, Chancellor of the Exchequer, introduced measures in his Summer Budget to abolish what is commonly known as the “base cost shift” as applied to sums received by individuals based in the United Kingdom involved in the investment management of private equity and other investment funds structured as partnerships, which is linked to the successful performance of a fund (carried interest); the stated purpose of such new measures being, to “make the tax system fairer by ensuring that individuals to whom a gain arises in the form of carried interest are taxed on their true, economic gain and that planning tools designed to ensure they are taxed on a lower figure, to achieve a lower effective rate of tax, are not effective.”
Continue Reading Summer Budget 2015––Carried Interest: Abolition of Base Cost Shift