Asset manager tax clampdown to hit private equity and hedge funds

The government is to crack down on investment managers "disguising guaranteed fee income as capital gains", as part of anti tax avoidance measures outlined in the Autumn Statement.

In the full Autumn Statement documents, released this afternoon following Chancellor George Osborne's speech to the House of Commons, the government said it will introduce new legislation to combat the issue. The government said recent years have seen some private equity and hedge funds structure themselves in ways which seek to avoid paying income tax on annual management fees by rolling them into performance fees. "The government will stop investment fund managers from disguising their guaranteed fee income as capital gains in order to avoid income tax," the documents said. Legi...