Key takeaways

• The UK tax treatment of distributions to private equity executives will change substantially from 6 April this year and will affect any investment manager who undertakes some activity in the UK (even if just meeting with a potential investor).
• The rules governing these changes were published on 24 March but left some areas of uncertainty. Many of these issues have been clarified by guidance that has now been published by HMRC. This Client Update provides a summary of this additional guidance and should be read in conjunction with our earlier update “Are Your Carry and Co-Investment Returns Safe from UK Income Tax? (Sadly, Your Management Fee Probably Isn’t.)”.