Private equity executives in the UK are alarmed by potential changes to the capital gains tax regime under the new Labour government. Proposed reforms could increase the tax on carried interest (the profit share earned by fund managers) and affect the favorable "non-dom" status, which allows wealthy foreigners to avoid taxes on overseas income. Executives warn that significant tax hikes could drive dealmakers out of Britain, threatening the UK's status as a leading private equity hub. While some insiders predict minimal impact, others are bracing for a possible exodus, particularly if taxes rise sharply.