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An overview by Travers Smith, Taxand UK
HMRC, the UK’s tax authority has recently issued guidance on the tax information it expects from private capital executives, particularly regarding carried interest. While there is no legal obligation to provide additional details beyond tax returns, HMRC encourages transparency by requesting “tax packs” and warns that inadequate information may lead to compliance checks.
Recognising the challenges of obtaining complete data in international fund structures, HMRC stresses the need for “reasonable care” in tax reporting. Executives should seek tax advice to ensure compliance and avoid penalties. A simplified tax regime for carried interest is expected from April 2026.
Elena Rowlands, Tom Margesson and Ian Zeider from our UK member firm Travers Smith have published a more detailed overview of this guidance and its implications here.
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