Private equity remains a force for good in health and social care
Commenting on reports that private equity avoids tax in health and social care investments, BVCA Director General Tim Hames said:
“Health and social care remains a sector in need of major investment and innovation to cope with sweeping demographic changes. Private equity is providing both when other sources of capital are constrained and local authority budgets squeezed. Private equity backed providers deliver a level of investment, innovation in services and training of staff which often out performs public provision. They are able to do so by channelling capital from literally hundreds of investors from around the world. The Quoted Eurobond Exemption is designed to encourage inward investment by global investors, many of them pension funds who are exempt from tax. . Those investors who are not exempt pay tax on the interest. Removing the exemption would mean less investment coming into the UK, and into social care providers where it is desperately needed. HMRC reviewed this matter last year but accepted the investment case for its retention”
Notes to editor
- The British Private Equity and Venture Capital Association (BVCA) is the industry body for the UK private equity and venture capital industry. The BVCA has approximately 500 member firms, representing the vast majority of UK-based private equity and venture capital firms and their advisers.
- Independent research from Laing and Buisson found that , the interests of private equity backers of healthcare companies are well aligned with the public interest in maintaining operationally efficient businesses offering good quality services. Read more here.
- HMRC last year published responses on possible changes to income tax rules on interest. In the case of the quoted Eurobond exemption, respondents point it out that ending it would undermine the UK’s competitive position and reduce investment and add complexity.