Understanding comp: IB vs PE (London)

I’ve seen a lot of posts saying IB as a career is becoming much more tempting compared to the traditional buyside with avg tc going up over the years.

At the later levels of IB, lots of TC is given as deferred pay / stock.

At the later levels of PE, majority of TC is given as carry. 
 

From my knowledge, carry is taxed much more lightly (around 20%?) as it is seen as capital gains.

How are deferred payments in IB taxed?

If they are taxed normally, surely lower pay roles in PE (say PE VP (carry inc) vs IB partner) on average have a MUCH bigger take home when considering UK tax rape?

2 Comments
 

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