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.
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.