Tim Worstall

It is all obvious or trivial except…

 

 

← →

Timmy Elsewhere

September 27th, 2007 · 1 Comment

Two at The Business.

Are we sure we want to change the taxation of carried interest and game theory and economics.

 

Tags: Timmy Elsewhere

1 response so far ↓

  • 1 Mark Wadsworth // Sep 27, 2007 at 2:58 pm

    Carried interest, bollocks frankly.

    The point is, if it were to be taxed as income at 40%, these chaps would structure the deal so that the target company e.g. Boots can claim a 30% corp tax deduction (Sch 23 FA 2003), so overall Treasury nets 10% of gain.

    This way, they structure it so that Boots does not get a corp tax deduction and the VC-chappies pay tax at 10% of the gain.

    For sure, this is glossing over the National Insurance bits, but hey.

Leave a Comment