Offshore reporting and non-reporting funds

Hi HMRC Admin 8, Thanks for your reply. I refer HS265 Offshore funds and it states how to report income gain. I would like to seek your advice on how to report LOSS on offshore reporting funds: (1) Can I offset gain on offshore reporting funds (transaction 1) with loss on offshore reporting funds (transaction 2)? (2) if there is no offset, how to report LOSS on offshore reporting funds? Which box on which form? Thanks. Ki Chan

Hi,
If no gain made, there is no need to include the SA106. You can include the loss information at additional information.
Thank you.

Hi HMRC Admin 8, I further check the HMRC Internal Manual and would like to clarify how to report the LOSS on disposal of offshore reporting funds. According to IFM13550, no loss is to be treated as arising on a disposal and that any loss arising can be relieved only as a capital loss In such case, should I fill in LOSSES on disposal of offshore reporting funds (in my case is US listed ETFs) on Box 23, Box 24, Box 25 and Box 27 of SA108 as well as provide computation working sheet for each disposal of offshore reporting funds? Thanks. Ki Chan

Hi
That is correct.
Thankyou.

Hi HMRC Admin 10, Thanks for your eMail. Sorry I made typo mistake. For LOSSES on disposal of offshore NON-REPORTING funds (in my case is US listed ETFs), not offshore reporting funds, should I fill in such losses on Box 23, Box 24, Box 25 and Box 27 of SA108 as well as provide computation working sheet for each disposal of offshore NON- REPORTING funds? Thanks. Ki Chan

Hi,

This should just be noted on additional information as no relief will be due. You can see guidance here:

IFM13550 - Offshore Funds: investors in non-reporting funds: computation of offshore income gain: losses

Thank you.

Hi HMRC Admin 19, Thanks for your reply. However, I still have question on LOSSES on disposal of offshore NON-REPORTING funds (in my case is US listed ETFs). Regarding IFM13550, it states that: (1) any loss arising (from offshore NON-REPORTING funds) can be relieved only as a CAPITAL LOSS; (2) the effect of this is that the capital loss cannot be offset against offshore income gains My question: As loss can be relieved only as CAPITAL LOSS, should I fill in such losses on Box 23, Box 24, Box 25 and Box 27 of SA108 as well as provide computation working sheet for each disposal of offshore NON- REPORTING funds? Thanks and regards, Ki Chan

Hi,
Yes still fill in the loss section and also provide additional information to confirm the details of the loss.
Thank you.

DEAR Hmrc Thanks for your guideline and I just need one more clarification before completing my tax submission. Based on HS 262, the monthly distribution of my OFFSHORE NON REPORTING FUND should be clearly report in Pg 2 and 3 of HS 106 under "Interest and other income from overseas saving". So, in SA100, should I also put it in Box 3 " Untaxed foreign interest" together? Or I should leave this blank and just complete SA106 only? Million thanks for your clarification as I do not want to faulty report anything

Hi samwai,
Unless you’re completing box 46 on page F6 of the ‘Foreign’ pages’ report the amount of income as follows:
Enter in box 11 on page F3 of the ‘Foreign’ pages details of all dividends received on which you are chargeable including any allowable foreign tax credit
Enter in box 13 on page F3 of the ‘Foreign’ pages all other income including any tax paid on that income.
Thank you. 
 

I m having non reporting offshore fund which distribute monthly. Guideline HS 262 clearly guide me to enter "Foreign"page Interest and other income from overseas saving. The only question is should I also report that distribution in SA 100 box 3 (title as untaxed foreign interest) as well.? Million thanks for kind clarification

Hi samwai,

The correct box to use will depend on your circumstance.  
If your foreign interest is untaxed and below £2000.00, you can enter it in box TR3.3 of SA100 and you do not need to shown in the foreign section. If your foreign interest is taxed or over £2000.00, you cannot use box TR3.3 of SA100, instead you will need to declare the interest and tax decucted (if appropriate) on SA106 or select the foreign option in the online return.

Thank you.