Tax breaks enjoyed by private equity giants are expected to be at the forefront of Alistair Darling's pre-Budget report.

The chancellor has brought forward his annual pre-Budget preview in a bid to make up lost ground for the Labour Party after Gordon Brown was forced into a humiliating U-turn on calling a surprise general election.

A withdrawal of private equity's access to carried interest tax breaks, which gifts them taper relief on their capital gains, may be on the cards.

After the taxman's Arctic systems loss, income splitting is also expected to be on the agenda.

Any major changes to the non-domiciled foreigner rules, which allow the rich foreigners based in the UK to avoid paying tax on income generated outside the UK, is thought to be unlikely.

Further reading:

Apax co-founder questions private equity tax breaks