RSS feedsFuture PM Gordon Brown today promised workers that he would review the perceived tax advantages enjoyed by wealthy private equity executives after criticisms that in some case these executives were paying less tax than manual labourers.
Answering a question from the floor at the GMB Union's annual congress in Brighton today, Brown said the government would 'deal with this very important issue' and 'make sure there is justice and integrity'.
His answer follows attacks on the way private equity executives are taxed from former Marks & Spencer chairman Paul Myners . Private equity bosses pay low tax on carried interest, as this is treated as an unlisted security. In some cases this means they can end up paying less tax than cleaning staff.
A Treasury spokesman said it had already launched a review into private equity and would continue with this work.
'Work on the review is ongoing, and will conclude in due course,' the spokesman said.
The GMB welcomed Brown's comments enthusiastically.
'Cleaners in the UK will be delighted to hear that the Treasury is considering whether the multi-millionaire elite who run the private equity industry should continued to enjoy a lower tax rate than cleaners and if so what is the justification for this,' GMB general secretary Paul Kenny said in a statement.
Further reading:
Former M&S chairman slams private equity tax rules
