Budget: Tax rises for private equity

The changes to the taxation of private equity carried interest bring to an end a basis of taxation agreed with HMRC as long ago as 1987 when the industry was in its infancy. This is one of a series of changes that have affected the way the industry has been taxed in recent Budgets and reflects the Chancellor's progressive tightening of the tax regime and withdrawal of reliefs.

Those affected will have to hope that other changes in the Budget will have a positive effect on the economy which feeds through into deal values.  The worry will be is this the end of the road for tax on the private equity industry.