The British government has bowed to political pressure from trade union activists and a number of left wing members of the ruling Labour Party, promising a review of the tax treatment of the “equity” invested in private equity buyout deals.
Paul Kenny, the General Secretary of the GMB, the union which has been spearheading the campaign to re-examine private equity taxation, claimed the announcement as a victory, and said it could force Permira and CVC Capital Partners, the buyout shops he has had in his sights over their investment in the roadside rescue operator Automobile Association, to pay an extra £30 million ($58 million) on that deal alone.
Full coverage to come on TheDeal.com and in The Daily Deal.
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