Answers · UK 2025/26
What is the tax rate on carried interest in 2026?
Carried interest is taxed at 32% CGT from April 2026, rising from 28% under the previous rules.
Full answer
From April 2026, qualifying carried interest (performance fees earned by private equity, venture capital and fund managers) is taxed as CGT at 32%, replacing the previous 28% rate. Non-qualifying carried interest is treated as income taxed at up to 45%. The regime applies under the Investment Manager Exemption conditions. HMRC published detailed guidance in Finance Act 2024/25.
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.