The Chancellor gave his Autumn Statement yesterday during which he announced that the government is to introduce new legislation under the Finance Bill 2016 to determine when performance bonuses received by asset managers will be taxed as income or capital gains. Bonuses will be subject to income tax, unless the underlying fund undertakes long term investment activity. The legislation is believed to target private equity fund managers; however, according to reports, the British Private Equity & Venture Capital Association (BVCA) has subsequently insisted that it is not applicable to private equity investments and that further clarification will be coming through from the government.