The government’s plan to offer exemptions on taxes paid on performance fees could be expanded to include trading firms, the FT said, citing two people familiar with the process. The tax change was already being planned for private equity firms and hedge funds.

The move would further bolster the appeal of a city that came back on the radar for global funds this year, as a booming initial public offering market and a friendlier regulatory regime encouraged hedge funds and other firms to move staff to the city.

The FT said officials could issue guidance to make clear that traders qualify for the tax break, rather than amending a bill which is already before the city’s Legislative Council.

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