What does reporting fund status mean?
The UK’s tax reporting regime for offshore funds, known as UK Reporting Fund Status (UK RFS), can dramatically reduce a UK investor’s tax bill. The UK tax authority, HMRC, maintains a public list of registered funds, so investors can screen out non-reporting funds before they invest.
What is a reporting fund?
A fund that has been approved by HMRC as a reporting fund is required to report to the investor and HMRC details of the income that has arisen within the fund, whether or not the income has been distributed.
What are offshore reporting funds?
Reporting Fund Status regime A non-UK fund (‘offshore fund’) can apply to HMRC for reporting fund status. As a result, on the disposal of an investment a UK individual would be taxed at capital gains tax rates on all growth in value up to 20% rather than the default income tax rates of up to 45%.
How is Eri taxed?
Income received by a reporting fund but not distributed to the investor is called Excess Reportable Income (ERI). The investor is liable to income tax on ERI accrued. It is their responsibility to report ERI on their tax return and pay any tax that may be due.
Do I include Equalisation on my tax return?
The equalisation payment is not treated as taxable income – it is a return of the investor’s capital and will reduce the amount invested for the purposes of capital gains tax (CGT). It should be factored into the calculation of the acquisition costs for CGT purposes.
What are the different stages of funding?
What are the different stages of Startup Funding?
- Pre-seed Funding stage. This is the first step in the funding process and is also commonly known as the bootstrapping stage.
- Seed Funding phase.
- Venture Capital phase.
- First sale of shares (IPO)
- Conclusion.
What is a closed fund status?
A closed fund is one that has stopped accepting new money from investors. A fund closed to new investments may be winding down and terminating, or else has reached some specified amount of assets that precludes it from taking in more money.
Where can I find the report fund status?
A list of share classes which currently have “Reporting Fund” status is published on the HMRC website. If you would like more information, please contact the Investor Services Team:
What does reporting fund status mean for Blackrock?
Reporting fund status. Certain share classes within BlackRock’s Fund ranges have elected to be ‘Reporting Funds’ for UK tax purposes. If you invest in a share class in a BlackRock fund which has ‘Reporting Fund’ status, you will need to review the yearly information posted here and include the relevant details on your UK tax return.
How does a reporting fund work in the UK?
Once registered as a reporting fund, the fund is obliged to provide to investors reports setting out the amount of income per unit/share earned during the most recent reporting period. This is so that UK investors can understand how much income they have earned for the purposes of preparing their own tax returns.
How to report an offshore fund in the UK?
Reporting funds. Full guidance on the reporting funds regime is contained in the Offshore Funds Manual. If you are an offshore fund wishing to submit an initial application for reporting fund status use Form CISC1. Reporting funds who submit their annual report can complete Form CISC2 to accompany the report.