Timmy ElsewhereOctober 11, 2007 Tim WorstallTimmy Elsewhere1 CommentAt The Business. Taxing carried interest and hitting entrepreneurs. previousAirport BloggingnextTony Benn on the Post Office 1 thought on “Timmy Elsewhere” Mark Wadsworth October 11, 2007 at 11:15 am 1. Knee jerk ‘anti-private-equity’ move. 2. To discourage buy-to-letters from selling to shore up property prices. 3. The change doesn’t actually deter people from setting up businesses, and it certainly does not affect ongoing businesses, it just discourages people from selling their businesses. 4. As you point out, super-profits get competed away. There is also something called ‘tax arbitrage’. Owners were happy to accept slightly lower prices for their businesses because they only pay 10% CGT. If this increases to 18%, then they will demand slightly higher prices, is all. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.