Today’s announcement is not the end of the story, as Casey Dalton, partner at Herbert Smith Freehills, notes: “The decision to not introduce immediate reform (beyond the rate change from 28% to 32%) will be welcomed by some, as it allows for further consultation opportunities and time to plan. "However, whether the announcement of further reform and inclusion of carried interest within the income tax framework in April 2026 nevertheless influences taxpayers’ behaviour, especially when combined with the non-dom changes, remains to be seen."
"There will be much relief across the industry". The private equity industry reacts to tax changes in the UK Budget, with comments from FTI Consulting's Lewin Higgins-Green, OpenOcean's Ekaterina Almasque and British Private Equity & Venture Capital Association (BVCA) CEO Michael Moore