Carried interest and UK residence: what the 2026 tax reset means for you
key takeaways.
- Carried interest is now taxed as income rather than capital gains
- Qualifying carry may benefit from an effective combined Income Tax and National Insurance rate of 34%. Non-qualifying carry may be taxed at full rates
- For internationally mobile executives, the UK will look closely at UK workdays and where the relevant services were performed
- Becoming non-UK resident may help in some cases, but only if strict residence and workday conditions are met.
Since 6 April 2026, UK carried interest is taxed as income. Learn when qualifying rates near 34% apply, and why UK workdays and services…
Case study: carried interest planning for a UK‑resident fund manager
Will your carry qualify?
What if you remain a UK resident?
Read also: Wealth planning: why the UK remains a strategic hub for entrepreneurs
What if you leave the UK at a later date?
What if you move to the US and continue working?
Read also: Lombard Odier UK CEO warns Rachel Reeves over entrepreneur exodus
How much time can you still spend in the UK if you leave?
related content.
our private banking expertise in the uk.
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The bottom line
1 Lombard Odier, Wealth Planning Newsletter. United Kingdom: Changes to UK tax treatment and carried interest. October 2025
2 Lombard Odier, Wealth Planning Newsletter. United Kingdom: Changes to UK tax treatment and carried interest. October 2025
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