Carried interest tax estimator
Estimate the tax on carried interest across Singapore, the US and the UK — and see how holding period and jurisdiction change what a GP keeps. Indicative rates, not tax advice.
Assumes carry is capital gain under a qualifying fund / fund manager. If characterised as income for services, it can be taxable at income tax rates (individuals up to 24%, companies 17%).
| Jurisdiction | Basis | Rate | Tax | Net carry |
|---|---|---|---|---|
| Singapore | Capital in nature — no capital gains tax in Singapore | 0.0% | $0 | $5,000,000 |
| United States | Long-term capital gain (asset held ≥ 3 years, §1061) | 23.8% | $1,190,000 | $3,810,000 |
| United Kingdom | Carried interest CGT rate (indicative 2025/26) | 32.0% | $1,600,000 | $3,400,000 |
Built by aama.io. Educational estimate, not legal or tax advice.
About this tool
How carried interest is taxed depends heavily on jurisdiction and holding period. Singapore has no capital gains tax, so carry that is capital in nature is generally untaxed. The US taxes carry as long-term capital gain only if the underlying assets are held at least three years (section 1061), otherwise as ordinary income. The UK taxes carried interest under a specific regime that is being reformed into the income-tax framework.
This estimator compares the indicative tax and net-after-tax on the same carry across all three jurisdictions, and flags how holding period changes the treatment. It is a directional guide, not tax advice.
How to use it
- Select a jurisdiction and enter the carried-interest amount.
- Set the average asset holding period (this drives the US §1061 and UK income-based carry tests).
- Compare the effective rate, tax due and net carry across Singapore, the US and the UK.
Frequently asked questions
How is carried interest taxed?
It varies by jurisdiction. Singapore generally does not tax carry that is capital in nature (no capital gains tax). The US taxes it as long-term capital gain if assets are held 3+ years (section 1061), otherwise as ordinary income. The UK applies a dedicated carried-interest regime currently under reform.
Is carried interest taxed in Singapore?
Singapore has no capital gains tax, so carried interest that is capital in nature is generally not taxed. If carry is instead characterised as income for services, it can be taxable at income tax rates — the characterisation is fact-specific.
What is the US 3-year holding period rule for carry (section 1061)?
Under section 1061, carried interest qualifies for the lower long-term capital gains rate only if the underlying assets were held for more than three years; otherwise the gain is taxed as short-term (ordinary income).
How is carried interest taxed in the UK?
UK carried interest has been taxed under a capital gains-based regime, with income-based rules where average holding is short. Reforms are moving carried interest into the income-tax framework — confirm the current rate with a UK tax adviser.