Risk and reward at heart of Budget balancing act

Chancellor Rachel Reeves has a big decision to make about the tax treatment of carried interest

Hello Rainmakers,

A few issues are emerging.

There are talk of a couple of decent sized floats this side of Christmas. One we know about, Applied Nutrition. But there’s talk of others too.

We’ve also heard this week that THG is to split, and demerge from Ingenuity, it’s powerful ecommerce engine that was supposed to be the beating heart of a different kind of ecommerce business. Who will buy it? Will the institutions left so sore by the unhappy experience of THG’s 2020 float? Or is it ripe for private equity?

In the meantime, there have been significant lobbying efforts ahead of next month’s Budget on the politically-sensitive issue of carried interest, and its more generous tax treatment. Today we take a look into the key issues, as both sides of the argument weigh up the risks and rewards involved.

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