Private Equity Fights for UK Tax Perk While Ducking Public Ire

To hear people in the private equity industry talk publicly, there’s not a lot concern about any changes the UK’s new Labour government might make to a tax break they’ve enjoyed for the better part of four decades. Behind the scenes, though, the lobbying is intense.

The industry has just a few weeks to persuade Labour, which took over with last month’s election, that carried interest — fund managers’ portion of profits on asset sales — should continue to be taxed as capital gains rather than as income. If the UK government makes a switch, it’s likely to be big, ...