Skip to content
Home Link Logo

UK Budget won’t change pattern of investment moving from the UK to US

Autumn Budget 2024

The Budget won't change the pattern of investment moving from the UK to the US.

Mark Abbs, Partner said:

We have seen a big shift of investment from the UK to US over recent years. Whilst the new increase in tax on ‘carried interest’ to 32% is not as high as it was widely mooted before the budget it is still significantly higher than in the US which taxes long term capital gains at 20%.

Chris Boulet, a Partner  said:

Carried Interest special election: It is possible to tax the ‘carry’ as it arises as opposed to taxing the distributions/realisations from the fund when received. The US adopts the arising basis and often leads to a tax credit mis-match for UK/US filers. The election has historically therefore been more appropriate for such individuals.

The election is irrevocable and can be applied to one or all limited partnership carried interest positions/allocations. There are consequences to the election i.e., if the fund does not go into “Carry”, you have incurred a tax payment funding ‘loss’.

Alex Straight, a US/UK Tax Partner said:

For American businesses, despite the rise in national insurance, the strong dollar and lower cost of living in the UK still makes the UK an attractive place to hire talent.

Would you like to know more?

If you would like to discuss any of the above, please speak to your usual Blick Rothenberg contact or Alex Straight using the form below.

Contact Alex

Alex Straight
Alex Straight
Partner
View Alex's profile