JustCheck

Hi, Could you please look at my specific question on dates - where the Fund Reporting Date and Disposal Date is in one tax year, but the Fund Deemed Distribution Date falls into the following tax year (because it's 6 months later). i.e. It's possible that the ERI increases base cost for CGT in 2022-2023 BUT the actual ERI (Foreign Interest) is reported in income in 2023-2024. So in effect - you use the Reporting Date for including ERI the CGT Disposal calc and the Distribution Date to report ERI as Income. Thanks.

Trying to clarify the treatment for Excess Reportable Income from Accumulation Units in an Approved Offshore Reporting Fund using HMRC “HS265 Offshore funds”. Firstly, I am assuming that the Reporting Date determines whether you are deemed to have received the ERI (not the Distribution Date)? So for a Fund with the following dates: Fund Reporting Date: 31/12/2022 Fund Distribution Date: 30/06/2023 For a Disposal Date of 20/12/2022 (Before the Reporting Date of 31/12/2022) there is no ERI as it was sold before the Reporting Date. For Disposal Date: 20/01/2023 (After Reporting Date but Before Distribution Date) 1) You have received ERI as it was held at the reporting date, even though the units were not held at distribution date. 2) Is it correct that the ERI increases base cost for CGT in 2022-2023 BUT the actual ERI (Foreign Interest) is reported in income in 2023-2024? So in effect - you use the Reporting Date for including ERI the CGT Disposal calc and the Distribution Date to report ERI as Income.

Sorry - can I double check please. I had searched this forum but had also read: CG14260 - Computation: rules determining date of disposal "If the disposal is made under an unconditional contract the date of disposal is the date the contract is made. It is not the later date when the asset is conveyed or transferred to the purchaser." So for shares wouldn't it be the Trade Date (the date the contract is made) and not the later date (when the asset settles). Thanks.

Hi - I can attach the records - but what do I actually show in the calculation? Assuming I list the Trading Credit and Commission as two separate items (with the Trading Credit effectively being a 'Negative Expense')? e.g: Allowable Expenses: Broker Commission: (40.00) Broker Trading Credit: 7.99 Is this correct? Thanks

Do you need to report anything to HMRC for shares sold for more than £49,200, where the net gain is zero AND you are NOT required to register for self assessment? Scenario: a) If the only assets disposed were shares with a value greater than £49,200. AND b) The Net Gain is Zero. AND b) You are NOT already registered for Self Assessment and have no requirement to. [ALL your answers to the HMRC questions on "Check if you need to send a Self Assessment tax return" determine that you DO NOT need to submit a self assessment. For CGT, Self Assessment question 8 "Do you need to pay any Capital Gains Tax?" - The answer is NO because the NET Gain is Zero.] Having used the HMRC website it doesn’t appear that reporting is required via Self Assessment, both "Check if you need to send a Self Assessment tax return" and “CGT: Work Out if you need to Pay [https://www.gov.uk/capital-gains-tax/work-out-need-to-pay]” say “No”. Having also searched the CGT Manual (in particular: CG20220 - Capital Gains manual: individuals: administration: Returns of chargeable gains” – this does not clarify the situation either. Thank you

My wife is UK Resident and has a holding in an Exchange Traded Fund that is listed on the London Stock Exchange. The fund is invested 100% in UK Government Gilts. She received a distribution from the fund of £2900, with no other income she will have no tax to pay as this is below her personal allowance. However, as with most ETFs the fund is domiciled in Ireland. The fund is listed by HMRC as an ‘Approved Offshore Reporting Fund’. Am I correct that the distribution: a) Is Interest Income as the fund is more than 60% bonds. b) Is Foreign Interest as the ETF is domiciled in Ireland. c) Requires her to register and file a Self Assessment form to declare Foreign Income, even though she will have no tax to pay as she is under her personal allowance? I’m just checking as she bought a UK Gilt fund listed on the London Stock Exchange and now I think she may have to complete a Self Assessment to declare Foreign Income where no tax is due. Thanks in advance!

In relation to showing Broker Commissions as Allowable Expenses for Share transactions within the submitted/attached ‘Disposal Summary’ for CGT: My Broker provides an amount of ‘Trading Credit’ as part of the monthly fees package and this credit is shown as offset against any Commissions incurred on the Contract Notes. In some cases the Net Commission (Commission Expense Less Trading Credit) is therefore zero. When reporting disposals within the ‘Disposal Summary’ to be attached to my return, should I: a. List the Trading Credit and Commission as two separate items (with the Trading Credit effectively being a 'Negative Expense')? OR b. Ignore the Trading Credit entirely? But then the transactions won't 100% agree with my records (i.e the Contract Notes). Thanks