Carry on paying on account (or risk paying more)
In this article for Tax Journal, Ceinwen Rees and Frankie Beetham discuss HM Treasury’s newly reformed tax on carried interest and the potential challenges for advisors to consider.
"Conceptually this makes sense. The new regime will treat carried interest as trading profit, and other types of trading profit already fall within the payments on account rules. HMRC presents payments on account in general as helping to spread the cost of tax by paying via instalments. However, in the context of carry, having to make payments on account may not be that helpful; whilst the rules seem simple, there are some unique complexities in relation to carried interest that may create issues in practice."
