UK private equity firms are rushing to complete sales of assets ahead of an expected rise in capital gains tax as the debate over the government’s treatment of profits on deals intensifies.

Mid-market private equity executives and advisers said many of the deals over recent months have been influenced by the seller's desire to pay only 18% tax on the profit as many believe the UK's new Conservative-Liberal Democrat coalition government will raise the rate to 40% in an emergency Budget on June 22.