One comment on “Timmy Elsewhere

  1. 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.

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