Hedge fund fight! UK riled up over rich investor taxes

Labour leader Ed Miliband speaks to an audience at Haverstock school in Camden on February 12, 2015 in London.
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Hedge funds and the amount of taxes they pay are center stage in U.K. politics right now.

The liberal Labour Party has slammed its conservative Tory rivals for being "bankrolled" by wealthy hedge fund managers, which they say is essentially a tax-avoidance play by ultrawealthy investors.

Labour claims that managers were given a big break by conservatives when they repealed a tax on certain investment funds. They also said hedge funds exploit a "loophole" by using derivatives to avoid paying a "stamp tax" on U.K. stock purchases.

The liberals also note that 27 of the 59 wealthiest hedge fund managers in the country are conservative donors or work for firms that are.

"This is a PM," Labour leader Ed Miliband said recently of conservative Prime Minister David Cameron, "who won't tackle tax avoidance for the simple reason that too many of his friends would get caught in the net. They're the party of Mayfair hedge funds and Monaco tax avoiders."