Specialist Accountants for Portfolio Managers & Investment Professionals

The Tax Environment for Portfolio Managers Has Never Been More Complex. Your Accountant Should Be Equal to It. The taxation of investment professionals in the UK has undergone a fundamental restructuring. Carried interest is now taxed as trading profit, CGT rates have risen sharply, Making Tax Digital is arriving for self-employed professionals, and HMRC's scrutiny of investment income has intensified. For portfolio managers, fund managers, and investment professionals, the difference between specialist advice and generic accountancy has never been more financially significant.

Consultax are dedicated accountants for portfolio managers and investment professionals who understand the full complexity of investment management remuneration from carried interest and management fees to co-investment returns, performance allocations, and personal investment income. We protect your financial position and keep you compliant, proactively.

Accountants Committed To Your Success

Reliable, proactive, and results-driven, we apply the same level of dedication to your success that you bring to your business every day.

Insightful Advice That Moves You Forward

We go beyond the numbers to offer guidance that’s tailored, and built for growth.

Personalised Service That Feels Like Partnership

Your goals matter, so we deliver attentive, custom support designed to guide you towards lasting success.

Financial Clarity You Can Fully Trust

We prioritise clear communication, accounting support you can understand and rely on.

Dedicated Tax and Accounting Support for Every Type of Investment Professional

Consultax works with investment professionals across the full spectrum of asset management and portfolio management disciplines. Whether your remuneration is structured through salary, management fees, carried interest, performance allocations, co-investment returns, or a combination of all of these - your tax position requires specialist handling from an adviser who understands how the investment management industry works.

As dedicated accountants for investment professionals, we work with:

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Portfolio Managers

Professionals managing discretionary or advisory portfolios across equities, fixed income, multi-asset, or alternatives whether employed, self-employed, or earning income through a personal limited company or LLP structure.

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Private Equity & Venture Capital Fund Managers

Fund managers with carried interest, co-investment holdings, management fee income, and the complex personal tax implications that the post-April 2026 carried interest regime introduces. The transition from CGT to income tax treatment of carried interest requires specialist, urgent advice.

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Hedge Fund Managers & Traders

Professionals managing hedge fund strategies, earning performance fees, and managing personal investment income alongside management remuneration. We advise on the correct tax treatment of trading gains, performance allocations, and the boundary between investment and trading activity.

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Wealth Managers & Independent Financial Professionals

Chartered wealth managers, IFAs with investment income, and discretionary fund managers who manage both personal client portfolios and their own investment activity.

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Asset Management Executives

Senior professionals at asset management firms receiving salary, bonus, long-term incentive plans (LTIPs), carried interest, and co-investment returns often with complex interactions between different income types in a single tax year.

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Investment Analysts & Quantitative Finance Professionals

Professionals at the analytical end of the investment management spectrum who receive salary, performance bonuses, and carry-linked awards requiring correct tax treatment on each element.

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Independent Portfolio Managers & Self-Employed Investment Advisers

Those operating independently as portfolio managers or investment advisers; managing their own business finances, VAT, self-assessment, and income tax planning outside the PAYE environment of a large institution.

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Investment Professionals Based in the UAE

UK-registered or UAE-based investment professionals with UK income sources, UK fund involvement, or UK residency considerations. We advise on the interaction between UAE residency and UK tax obligations, including the Statutory Residence Test implications for internationally mobile fund managers.

The Most Significant Tax Changes for Investment Professionals

The tax environment facing UK portfolio managers and fund managers has been transformed by a sequence of legislative changes between 2024 and 2026. Understanding these changes and acting on them with specialist advice, is no longer optional for those with material investment management income.

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Carried Interest Reform - From CGT to Trading Profit (April 2026)

This is the most consequential tax change for UK fund managers in decades.

From 6 April 2026, carried interest is taxed as trading profits under the Income Tax framework, at rates of up to 45% plus Class 4 NICs, with special computational rules applying a 72.5% multiplier to qualifying carried interest. This results in an effective tax rate of 34.075% for additional rate taxpayers including NIC.

The transition carries significant practical implications beyond the headline rate change:

Payments on account: Under the new rules, tax and NICs on carried interest will be relevant for calculating a person's payments on account for the following year, creating significant cash flow implications for carried interest holders. Most private equity professionals were not previously subject to payments on account on their carry; this has changed entirely.

Qualifying carried interest conditions: For carried interest to be qualifying and therefore for the 72.5% multiplier to apply, it must meet conditions including a weighted average holding period of the fund's investments of at least 40 months, with partial relief for periods of at least 36 months.

Making Tax Digital implications: As carried interest is now treated as trading profit, it falls within the MTD for Income Tax regime in the same way as any other trade. This means quarterly digital submissions to HMRC from April 2026 for those who meet the income threshold.

Interim CGT rate: From 6 April 2025 to 5 April 2026, carried interest is taxed at 32% under the CGT regime. Timing decisions around when carried interest crystallises in this transitional period require careful, specialist analysis.

For any fund manager with carried interest, a comprehensive review of your position under the new regime is not a planning nicety but it is an urgent financial necessity.

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Rates Increased Across the Board (Capital Gains Tax)

From 30 October 2024, the lower rate of CGT increased from 10% to 18% and the higher rate from 20% to 24%. For portfolio managers and investment professionals with personal investment portfolios, co-investment positions, and direct asset holdings, these higher rates materially alter the after-tax return on disposals and the timing decisions around realising gains.

The annual CGT exemption is now £3,000, reduced from £12,300 just two years earlier. The combination of higher rates and a near-eliminated exemption means that personal investment portfolio management now demands an actively tax-aware approach that many individual investors and their accountants are not applying.

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The Personal Allowance Trap for High-Earning Investment Professionals

For investment professionals earning above £100,000, the personal allowance tapers by £1 for every £2 of income above that level; disappearing entirely at £125,140. This creates an effective marginal tax rate of 60% in this income band. For those with substantial management fee income, salary, and bonus, this is one of the highest-value and most accessible areas of legitimate tax planning and one of the most frequently neglected by advisers who do not specialise in high-income professionals.

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Making Tax Digital (April 2026)

Self-employed portfolio managers and investment professionals with gross income above £50,000 must comply with Making Tax Digital for Income Tax from April 2026, submitting quarterly digital updates to HMRC. As noted above, the reclassification of carried interest as trading profit also brings carried interest holders within the MTD framework. The threshold reduces to £30,000 in 2027 and £20,000 in 2028. Non-compliance carries automatic financial penalties per missed submission.

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Impact on Internationally Mobile Fund Managers (Non-Dom Reform)

From April 2025, the UK abolished the remittance basis of taxation, replacing it with the four-year Foreign Income and Gains (FIG) regime for qualifying new arrivals. For internationally mobile fund managers particularly those who have previously sheltered offshore fund income from UK tax under the remittance basis the implications are far-reaching. The Temporary Repatriation Facility allows previously sheltered income to be remitted at 12% in 2025-26 and 2026-27. The window is closing.

Accounting & Tax Services Built Around the Investment Management Profession

Every service we provide is designed around how investment professionals actually earn, how their remuneration is structured, and what HMRC expects from those operating in the asset management sector.

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Carried Interest Tax Planning & Compliance

The post-April 2026 carried interest regime is technically complex and operationally demanding. We provide specialist advice on qualifying carried interest conditions, the 72.5% multiplier, holding period analysis, payments on account management, MTD compliance for carried interest as trading profit, and the interaction with other income sources on your self-assessment return.

For those with carry crystallising in the 2025-26 transitional year at 32% CGT, we also advise on the timing considerations that determine whether crystallisation before or after 6 April 2026 is more advantageous for your specific fund structure and income position.

Best for: Private equity fund managers, venture capital professionals, hedge fund managers, and any investment professional with carried interest or performance allocation income under the new regime.

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Self-Assessment Tax Returns for Investment Professionals

An investment professional's Self-assessment return is rarely straightforward. Management fees, salary, bonus, carried interest, co-investment returns, personal portfolio gains, dividend income, interest, overseas income, and pension contributions all need to be correctly reported and co-ordinated. A filing error or omission in any one of these areas can trigger an HMRC enquiry that is time-consuming, costly, and entirely avoidable with the right accountant.

As specialist accountants for investment professionals, we prepare your return from a thorough review of every income source, apply all available reliefs and allowances, and ensure your filing is accurate, defensible, and submitted well within the deadline.

Best for: Portfolio managers, fund managers, asset management executives, and any investment professional with income from multiple sources requiring precise personal tax compliance.

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Personal Tax Planning for Portfolio Managers

Effective personal tax planning for investment professionals goes well beyond filing a return on time. We review your income structure, investment position, pension arrangements, property holdings, and personal financial goals to identify where legitimate savings are available throughout the tax year.

This includes management of the £100,000 personal allowance threshold, pension contribution strategies to reduce adjusted net income, timing of investment disposals around CGT rates and annual exemptions, spousal transfers of investment assets, and the co-ordination of personal tax planning with your firm's remuneration cycle.

Best for: Portfolio managers and investment professionals earning above £100,000 who want a proactive, year-round approach to personal tax strategy rather than a reactive annual filing exercise.

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Capital Gains Tax Planning & Reporting

With CGT rates now at 18% and 24% for most assets, and the annual exemption reduced to £3,000, the tax cost of realising gains on a personal investment portfolio, co-investment position, or business asset has risen substantially. Strategic CGT planning; covering disposal timing, use of annual exemptions, spousal transfers, loss harvesting, and Business Asset Disposal Relief eligibility can make a material difference to your net investment return.

We advise on the full CGT picture for investment professionals: personal portfolio disposals, co-investment exits, share scheme disposals, and the interaction between CGT and the new carried interest trading profit regime.

Best for: Investment professionals with personal portfolios, co-investment positions, share scheme awards, and any investment-related asset disposal requiring professional CGT analysis and reporting.

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Limited Company & LLP Structuring for Investment Professionals

Many portfolio managers and independent investment advisers operate through a personal limited company or LLP. The tax efficiency of these structures depends on how income is extracted, how the entity interacts with the individual's personal tax position, and following the April 2026 changes, how the treatment of carried interest and performance fees at entity level interacts with income tax at a personal level.

We advise on the right structure for your income level and working pattern, manage company or LLP accounts and tax returns, handle payroll and dividend planning, and review your structure annually to ensure it remains fit for purpose as both your income and the tax rules evolve.

Best for: Self-employed portfolio managers, independent investment advisers, and investment professionals who operate or are considering operating through a personal service company or LLP.

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Payments on Account Management for Fund Managers

One of the most immediate and practically significant consequences of the carried interest regime change is the cash flow impact of payments on account. Fund managers who were not previously subject to payments on account on their carried interest income are now required to make advance payments of income tax and NICs based on the prior year's liability.

We model your payments on account position, calculate the correct advance payments, advise on any legitimate reduction applications, and ensure you are not caught short when the January and July payment dates arrive. Proper advance planning of payment on account liabilities is one of the most tangible services a specialist accountant provides to fund managers in the current environment.

Best for: Private equity and venture capital fund managers with new carried interest income under the post-April 2026 regime, and any investment professional whose income profile has changed materially from the prior tax year.

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Non-Dom & International Tax Advice for Investment Professionals

Internationally mobile fund managers and portfolio managers face a specific set of tax challenges following the abolition of the non-dom remittance basis. We advise on FIG regime eligibility and claim strategy, the Temporary Repatriation Facility, offshore fund income reporting, the UK Statutory Residence Test and its implications for international fund managers visiting or working in the UK, and the apportionment of carried interest between UK and non-UK workdays for non-resident carry recipients.

Non-UK resident fund managers who perform a portion of their services in the UK are taxed only on the proportion of carried interest related to UK services but calculating this correctly, and ensuring your workday tracking is accurate and defensible, requires specialist advice that most general accountants cannot provide.

Best for: Non-UK domiciled fund managers, internationally mobile investment professionals, UAE-based fund managers with UK fund involvement, and those previously on the remittance basis navigating the TRF window.

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Making Tax Digital Compliance for Investment Professionals

Self-employed portfolio managers and fund managers whose carried interest is now treated as trading profit are within the scope of Making Tax Digital for Income Tax from April 2026. We assess your MTD obligations, set up compliant digital record-keeping, configure the appropriate HMRC-approved software, manage your quarterly digital submissions, and file your year-end declaration; ensuring you are fully compliant before the first deadline.

Best for: Portfolio managers and fund managers with self-employment income or carried interest reclassified as trading profit who need to comply with MTD from April 2026.

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Year-Round Virtual CFO & Financial Oversight

For senior investment professionals and independent portfolio managers managing complex personal finances alongside business income, year-round financial oversight provides the visibility and control that reactive annual accountancy cannot. We act as your personal financial controller; reviewing quarterly income, modelling tax projections, managing cash flow to meet payment on account obligations, advising on significant financial decisions, and ensuring your overall financial position is managed as actively as the portfolios you manage.

Best for: Senior fund managers with complex multi-source income, independent portfolio managers running their own practice, and investment professionals who want their personal finances managed with the same rigour they apply to client portfolios.

Why Portfolio Managers & Investment Professionals Choose Consultax

We are not a general accounting practice that occasionally files a fund manager's return. Consultax provides dedicated tax and accounting services for investment professionals backed by genuine financial markets expertise, ICAEW accreditation, and 17 years of Chartered Accountancy experience led by a PwC-trained practitioner who understands the investment management industry from both sides of the advisory relationship

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Frequently Asked Questions

Qualifying carried interest must meet conditions including a weighted average holding period of the fund's investments of at least 40 months, with partial relief available for holding periods of at least 36 months. Whether your carried interest qualifies depends on your fund's investment profile, the holding periods of the underlying assets, and the specific terms of your carry arrangement. We analyse your fund structure, model the holding period calculation, and advise you on whether your carried interest meets the qualifying conditions and what the tax consequence is if it does not.

The tax position of a portfolio manager or fund manager involves income types, structures, and legislative rules that most general accountants will not have encountered. Carried interest under the new regime, co-investment CGT, DIMF rules, performance fee treatment, personal allowance management for high earners, and international remuneration apportionment all require specialist knowledge. The cost of incorrect advice; overpaid tax, missed reliefs, HMRC enquiries, and penalties; consistently exceeds the cost of the specialist accountant by a significant margin.

As carried interest is now treated as trading income, income tax and Class 4 NIC liabilities arising on carry will now feed directly into payments on account calculations. This means you are required to pay two instalments of approximately 50% of your prior year's total income and NIC liability; in January and July. For fund managers who received substantial carried interest in their first year under the new regime, the payment on account due the following January can be very large and entirely unexpected without advance planning. We model your payment on account position well in advance and advise on any legitimate reduction applications.

This depends on your residency position, the nature of your UK fund involvement, and the services you perform in the UK. Non-UK resident fund managers are taxed on the proportion of carried interest related to UK services. Establishing and documenting an accurate UK workday count is therefore essential for internationally mobile fund managers. We advise on the Statutory Residence Test, UK source income obligations, and the correct apportionment of carried interest and management fee income between UK and non-UK activities.

Yes. We assist investment professionals with prior-year corrections, voluntary disclosures, and HMRC enquiry responses. The complexity of fund manager taxation means that prior-year filings often contain errors; particularly around carried interest classification, co-investment treatment, and overseas income. We review your historical position, correct what needs correcting, and manage any HMRC correspondence professionally.

Ready to Work With an Accountant Who Understands Investment Management Tax?

The tax changes affecting portfolio managers and fund managers in 2025 and 2026 are the most consequential in recent memory. The new carried interest trading profit regime, payments on account implications, higher CGT rates, the near-elimination of the annual CGT exemption, Making Tax Digital, and the post-non-dom landscape all demand specialist knowledge; not a generalist who will work it out as they go.

Consultax provides dedicated tax and accounting services for portfolio managers, fund managers, and investment professionals; backed by ICAEW accreditation, a PwC-trained lead, and 17 years of genuine financial expertise. From carried interest compliance and personal tax planning to CGT advice, limited company structuring, international tax support, and year-round financial oversight. We manage every element of your financial position with the precision and discretion your profession demands.

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