Today's UK Autumn Budget introduced notable changes to the tax treatment of carried interest, impacting private market participants, particularly among AIMA’s private credit manager members.

Commenting on the budget, AIMA CEO Jack Inglis said:

"Today's announcement regarding the tax treatment of carried interest acknowledges the need for the UK to be competitive in an international context. The new capital gains tax rate of 32% keeps the UK close to the tax treatment in other countries, such as the US, but it is intended to be replaced by a new regime that sits wholly within the income tax framework.

The government will consult further on policy options for the new regime, and while the details need to be examined fully, we note the elements of the package that appear to recognise the role of carried interest in aligning stakeholder objectives and incentivising private market investments and asset management in the UK. In particular, we support the recognition of private credit managers' role in financing the UK economy. 

AIMA will continue to work closely with the UK Government throughout the new consultation process as the revised tax regime is developed."