Onshore Perspectives for Private Equity and Hedge Fund Managers — Carried Interest and Income Taxation in the US, the UK and Germany 2011

Summary:  Investment funds, especially private equity and hedge funds, have come under scrutiny not only for their role in the financial and credit-market crisis, but also in respect of the tax treatment of the “carried interest” earned by managers of such funds, which is perceived by many as unduly (tax-) advantaged. At the heart of the tax debate lies the question whether such a carried interest should be taxed as capital gain (as is presently the case in the US and the UK), on the basis that it represents an investment return, or whether, as ordinary, compensation, income earned for services.

The attached brochure, “Onshore Perspectives for Private Equity and Hedge Fund Managers — Carried Interest and Income Taxation in the US, the UK and Germany 2011” summarizes and compares the current tax treatment of investment managers’ income (including but not limited to the carried interest) in the United States, the United Kingdom and Germany.