With the Autumn Budget approaching, attention is turning to what the Chancellor may announce. For the UK asset management industry, the priority is not further change but the stability and certainty needed to invest, grow and compete internationally.

Stability after significant tax change

Asset managers have already absorbed substantial change, including the new carried interest regime introduced from 6 April 2026. The reforms fundamentally changed how carried interest is taxed, with managers now adapting their arrangements and processes to the new regime.

Given how recently such a significant reform was introduced, we would welcome a period of stability rather than further changes to the carried interest regime. This would give private equity, venture capital and other alternative investment managers greater confidence when making long-term decisions around remuneration, investment and business structure.

Maintaining the UK’s competitiveness

Asset management is inherently international. Firms have increasing choice over where they locate investment teams, senior executives, new operations and other financial centres are competing hard for that business. Tax will rarely be the only consideration, but predictability and competitiveness are important when businesses decide where to invest, employ people and expand.

Against that backdrop, we would caution against measures that make the UK materially less attractive to internationally mobile investment professionals or investment management businesses. A stable and internationally competitive tax environment will be important if the UK is to continue attracting businesses, capital and talent.

Supporting investment and growth

Asset managers and private capital have an important role in the UK economy, providing funding at different stages of a business's growth and enabling businesses to invest, expand and enter new markets.

We would welcome measures that reduce barriers to investment and encourage domestic and international capital to back UK businesses. A supportive and predictable tax environment benefits both the asset management sector and the wider economy.

Greater certainty for investment management LLPs

For investment managers operating as LLPs, the salaried member rules remain an important consideration, particularly following the recent BlueCrest Supreme Court decision. The decision provided clarification around the application of the "significant influence" test.

Updated HMRC guidance reflecting the judgment, and clarity on how HMRC will approach open enquiries, would help investment management LLPs assess their governance and remuneration arrangements with greater confidence.

Looking ahead

A successful Budget for asset managers would:

• Leave the carried interest regime unchanged while it beds in

• Avoid measures that make the UK less attractive to internationally mobile investment professionals and businesses

• Support more capital reaching growing UK businesses

• Be followed by clear HMRC guidance on the salaried member rules after BlueCrest

Get in touch

After several years of significant reform, what the industry needs most from the Budget is time to adapt. Buzzacott's Financial Services Tax team works with asset managers at every stage of their growth journey. If you would like to discuss how the Autumn Budget or wider tax developments could affect your business, please get in touch with our team.