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Posted Tue, 20 Dec 2022 19:06:10 GMT by Lorenzo Colo
I bought shares in a fund in 2006 while I was living in Italy. The fund is is composed of shares (as far as I understand), is named Dividendo Arancio and is managed by a SICAV of ING. I have been declaring the dividends in my SA every year. I sold all the holdings in November 2021. I did not pay tax in Italy on the cash I received from the sale. My current guess is that the gains should be reported as "Other overseas income and gains" but I'm terribly confused. The help in the SA form points to Offshore Funds Manual and Savings and Investments Manual. They are huge. I never had to deal with these and I did not expect the matter to be this complicated. First question: can you please guide me in choosing which box of the SA the gains should go? Second question: I know how much I paid in Euros in 2006, I know what I got in Euros in November 2021. How do I calculate the gains?
Posted Thu, 22 Dec 2022 11:21:05 GMT by

If you dispose of foreign shares and make a gain, then this gain is liable to tax.

You need to work out the value of the shares in pounds sterling at the time of purchase and the disposal value of the shares in pounds sterling, to work out if there is a gain.

You would enter the gains on SA108 capital gains summary, and if you were claiming for foreign tax paid, you would also include on SA106 boxes 33 to 40.
The official exchange rates can be found at:

Exchange rates from HMRC in CSV and XML format

You are free to use either the monthly, yearly average or the spot rate to convert to sterling.

Thank you. 
Posted Thu, 22 Dec 2022 12:36:17 GMT by Lorenzo Colo
Thank you for the reply. I'm not sure of the nature of what I sold as far as HMRC is concerned. Are gains from the sale of a managed fund investing in shares ever treated as "capital gains" instead of "income"? What is a "reporting fund"? How would the gains from reporting fund be taxed?
Posted Fri, 23 Dec 2022 11:25:53 GMT by HMRC Admin 19

You can see further guidance here:

IFM12146 - Offshore Funds: Overview of the offshore fund rules: overview of the treatment of UK investors

Reporting fund will be capital gains and non reporting funds will be Income Tax.

For capital gains you will declare it as shares. Guidance on how to complete the capitaLlgains section of the return can be found: 

Capital Gains Tax summary notes

Thank you.
Posted Fri, 23 Dec 2022 12:54:19 GMT by Lorenzo Colo
OK, thanks. I think I'm now be able to deal with it.

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