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Will Private equity company's cost us more in taxes?


In the UK they only pay 10% tax. eg after the take over of Boots, They will save 拢120,000,000 in tax which the PLC would have paid.

It was from a report on the Today programme, BBC Radio4. I'm taking it in good faith.

How do you figure that? Please post a link to your source.

The 10% rate of tax applies to private equity holders when they sell on their shares in 2 or more years time. The profit they make on selling the shares will be subject to capital gains tax, at an effective rate of 10%. This has nothing to do with the amount of tax that the target company (Boots or whoever) will pay. The company will pay 30% tax on its trading profits, regardless of who owns the shares.

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