Policy paper

Reform of the tax treatment of carried interest

This measure is about the introduction of a revised tax regime for carried interest.

• From: HM Revenue & Customs
• Published: 21 July 2025

Documents

Revised tax regime for carried interest

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Draft legislation

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Draft legislation (accessible version)

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Explanatory note

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Details

This measure introduces a revised tax regime for carried interest which sits wholly within the Income Tax framework. This measure was announced at Autumn Budget 2024 and a policy update was published on 5 June 2025. The revised regime will take effect from 6 April 2026.  

Published 21 July 2025