HMRC Admin 25 Response

Hi BritishAl23,
If the distribution is re-invested into the fund, then there is no tax.
If the distibution is paid to you, then there is Income Tax liability.
When the fund is disposed of, then there will be a libility to Income Tax and not Capital Gains Tax.
Thank you. 

Hi BritishAl23,
The investor in non reporting funds is taxable on income that has been distributed to them.
Please have a look at the guidance on non reporting funds here:
IFM12100 - Offshore Funds: introduction: background to the treatment of UK investors in offshore funds
Thank you. 

Hi Kevinrv,
Where you pay £5000 into your pension scheme, after your income has been taxed at 40%.
Your pension provider will claim 20% on the £5000 payment, which is £1250 (£6250 * 80/100 = £5000).
In your tax return, you are claiming the remainder of the tax relief, so you enter the gross figure paid so far £6250.
Your basic rate band will be extended by this amount so that £6250 is only taxed at 20% and not 40%, giving a further £1250 tax relief.
The difference is that you will only have paid £6250 into your pension scheme, with the other £1250 tax relief used to reduce your tax liability or repaid directly to you.
The other person has had to pay £8333 into their pension, to claim 40% tax relief.
Thank you. 

Hi BritishAl23,
Non reporting funds are treated as 'offshore income gains' and are subject to Income Tax not Capital Gains Tax.
The gains should be entered in box 41 of SA106 and in the box marked "Other overseas income and gains" on the online return.
Whilst the distributions have been reinvested back into the fund, these are still taxable income.
Thank you. 

Hi BritishAl23,
The main effect for UK investors who have invested in non-reporting funds, as opposed to reporting funds, is that 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.
IFM12300 - Offshore Funds: introduction: non-reporting funds
As you have not yet disposed of them or received a distribution, there is nothing to declare at this time.
Thank you. 

Hi cop2hogs,
Please refer to guidance at:
Overseas pensions: pension transfers
Thank you. 

Hi TN,
Box 19 can only be found on SA108.
Capital Gains Tax summary
If you are completing your tax return online, then numbering is different.
You will need to select yes to choose the type of asset that resulted in the loss and save and continue.
One of the questions will be losses in the year.
Thank you. 

Hi Je77 Jones,
Article 18 of the UK / Hong Kong double taxation agreement, advises that pensions arising in Hong Kong and paid to a resident in the UK, will only be taxable in Hong Kong.
UK/HONG KONG DOUBLE TAXATION AGREEMENT AND PROTOCOL
In the interest of full disclosure, you could declare this pension as additional information in box 19 of SA100, so that it is not included in any calculations.
Thank you. 

 

Hi TC_UK,
Capital gains losses, cannot be set against income arising in the tax year, except where they arise from unlisted shares and securities, in certain circumstances.
See box 41 of SA106 notes form more information.
Capital Gains Tax summary notes
In general, capital gains losses can only be carried forward and set against a future capital gain.
Thank you, 
 

Hi Zia Khan,
HMRC cannot advise you on this as your residence is for you to determine based on the guidance available:
 RDRM12000 - Residence: The SRT: Split year treatment: Contents
Thank you.