The United Kingdom offers new concessions to private shares on the tax campaign

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On Thursday, the UK government revealed new concessions to private stock companies due to the tax lounge of executive managers in this field, after warnings that reform will harm the British competitiveness.

In April, Chancellor Rachel Reeves raised the tax rate of interest – the share of profits kept by the executive managers of private shares when they sell companies – from 28 percent to 32 percent.

The government plans to treat the preserved benefits as an income for tax purposes, rather than capital gains, from April next year after the Labor Party pledged in its electoral statement to close the “gap” that involves private shares.

However, the proposed new system still treats the profits of CEOs relatively positively: the fund managers would have imposed an effective rate of 34.1 per cent – significantly less than the additional income tax rate of 45 percent.

After consulting the system, the treasury said in a document It was published on Thursday that the government will drop proposals that would make it difficult for CEOs to qualify for a rate of 34.1 percent.

The government had said that, as of April, executives would be asked to set the minimum money in their money according to the so -called joint investment.

She was also planning to present a new domain waiting period for the Fund’s director to qualify for a rate of 34.1 percent. Managers are currently required to wait about 40 months between the benefits that are granted and pay to pay to the treatment as the capital gain.

However, the government said on Thursday that it would drop both proposals.

The government also narrowed the proposals that large private stock companies have been exposed, including Blackstone, KKR and EQT due to concerns that could make the fund managers undergo a UK tax long after they leave the country.

As of April, the Non -United Kingdom will undergo income tax on the preserved benefits “to the extent related to the services conducted in the United Kingdom,” which leads to some industry figures to raise concerns that the managers who left Britain have long been a long time ago.

On Thursday, the government made concessions, including the announcement that it will deal with all private stock services that are made in Britain before last October budget as non -American activities.

I also mentioned that individuals will only consider providing UK services if they work 60 days a year in the country.

Michael Moore, CEO of BVCA, a commercial body in the private stock industry, welcomed the announcement of the government, saying it has taken a “practical approach to considering the potential effects of the proposed new interest system on growth and competitiveness.”

However, Moore warned that this industry was still concerned about the “risk of double taxation” in some areas of reform and will continue to deal with the government.

Dan Nidel, founder of the Associats, said that the government advertisement represents a “great climb” by the ministers, saying that the “highly organized pressure voltage” may “obtain some great victories.”

He added: “The government has dropped the condition of” joint investment “. In other words, people can continue to invest a symbolic amount, receive a huge return, and achieve the reduced tax rate.”

Jennifer Wall, a partner at BDO, a accounting company, said that the new treasury document “showed that the government had heard” and “understood the industry and its importance.”

Those familiar with the treasury said that the changes in the new document were “technique” in nature, and sought to reduce its importance.

Additional reports by George Parker