Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if he will take steps to close the tax avoidance scheme known as the Mayfair tax loophole.

I assume that the honourable gentleman’s question refers to the capital gains tax treatment of carried interest. This practice is long-standing and is consistent with international practice. The Government announced legislation at Summer Budget to ensure that managers pay at least the full rate of capital gains tax on their profit from carried interest. The Government is also consulting on proposals to ensure that this capital gains tax treatment is only accessible by individuals who manage funds carrying on genuine long-term investment activity and not more widely.