Sue225

@c5557839, Thank you very much for your extremely detailed reply! In my case, it is a non-reporting mutual fund from the US which appears to have a corporate form (or at least it is an open ended investment company, which the manual you cited lists as an example of a corporate form?). So, it may have qualified as a dividend after all, ugh. ..I wound up reporting it under 'Other Overseas Income and Gains', which is treated as income and is in the income tax bracket, rather than falling under capital gains or dividend rates. I didn't find a 'miscellaneous foreign income' section to report the capital gains distributions. Instead, 'Other Overseas Income and Gains' seemed the closest approximation I could find. I do remember coming across the info in that link you kindly posted but I was lost when it came to deciphering what was meant by 'corporate form' or 'foreign unit trust'. Though my fund may be a corporate form fund, I felt that I wouldn't know how to argue it with HMRC. Anyway, thank you so much for the excellent information! Extremely hepful :) Best wishes

@c5557839, Hi, @c5557839, I have the same issue with capital gains distributions and under what category to report them on the self-assessment. Haven't recieved a reliable answer yet either. Could I ask you what you wound up doing on your own self-assessment return? To be safe I have listed mine under 'Other Overseas Income and Gains' which unfortunately charges at the income tax rate, rather than dividend rate or capital gains rate. I will probably seek tax advice for the future but it is just so expensive with cross-border issues.

Hi, thanks for your reply. That guidance says that for non-reporting funds, on disposal of their interests they will be liable to tax on any gain arising as if it were income (that is, an offshore income gain, or ‘OIG’) instead of as a capital gain. From that, it sounds as if they are definitely not to be reported as capital gains. However, do I think of them as divends since they are annual distributions and put them in the foreign dividends section or do I put them in the Other Overseas Income and Gains section? I also don't know if they are considered to really involve a 'disposal' as I didn't dispose of any shares- I didn't sell anything. The fund sold some investments and reinvested in others and made a profit and it has to distribute that 'gain' among shareholders. It sounds like it's actually unclear how they should be considered and where they should be reported on the self-assessment. Makes it difficult because there are different tax implications according to where you report them :( Thanks for helping!

Hi, I have a non-reporting mutual fund in the US that has paid a 'capital gains distribution'. I haven't sold any shares or anything myself, it's just a distribution the fund has made at the end of the year to all shareholders that are then automatically reinvested in the fund. How are capital gains distributions from USA mutual funds treated in the UK for tax purposes? Do you report them under 'Other Overseas Income and Gains' or Foreign Dvidends or are they considered Capital Gains? I called HMRC and they said to list them under foreign dividends but I'm worried I didn't explain what I was talking about well enough and that was the wrong advice. The tax due is different according to how they are reported so I want to get it right. The mutual funds are a non-reporting fund. Thanks in advance for any advice.

Hi, I have a mutual fund in the US that has paid a 'capital gains distribution'. I haven't sold any shares or anything myself, it's just a distribution the fund has made at the end of the year to all shareholders that are then automatically reinvested in the fund. How are capital gains distributions from USA mutual funds treated in the UK for tax purposes? Do you report them under 'Other Overseas Income and Gains' or Foreign Dvidends or are they considered Capital Gains? I called HMRC and they said to list them under foreign dividends but I'm worried I didn't explain what I was talking about well enough and that was the wrong advice. The tax due is different according to how they are reported so I want to get it right. The mutual funds are a non-reporting fund. Thanks in advance for any advice.