Key Insights:

Policy calm, but fragile: The UK government has engaged constructively with the private capital sector since 2024, but the incoming administration's intentions on capital gains tax and wealth taxes remain unclear.

Tax disputes an increasing headache for businesses: The UK tax authority's escalating scrutiny of executive remuneration – reflected in high-profile court victories and an apparent jump in investigations – is presenting financial and operational challenges for the private capital sector.

Asymmetry favours the agency: HMRC dictates the pace, scope and terms of enquiries.

Links:

https://www.ft.com/content/6b8cd156-c5bb-4cce-8c54-818fd19fab96?syn-25a6b1a6=1

https://www.traverssmith.com/knowledge/knowledge-container/the-uks-carried-interest-tax-regime/

https://www.traverssmith.com/knowledge/knowledge-container/uk-government-proposes-reform-of-taxation-of-llc-members/

https://www.traverssmith.com/knowledge/knowledge-container/all-change-for-uk-aifmd