Elect an offshore collective investment vehicle for tax transparency on UK capital gains
Make a transparency election for offshore collective investment vehicles.
You can make an election for transparency for offshore collective investment vehicles to be treated as a partnership for Capital Gains Tax purposes.
Who can make the election
You must be the fund manager, or authorised to act on behalf of the fund manager to make an election on behalf of the fund.
The fund must be a collective investment vehicle and one of the following:
- unit trust
- contractual arrangement
You can usually make the election within 12 months of the fund acquiring a direct interest in UK land or an asset that is property rich. Find more information about the time limit in paragraph 9 and the transitional provisions in Schedule 5AAA Taxation of Chargeable Gains Act 1992.
Once made, you cannot withdraw the election.
Qualifying conditions
To qualify for election, the fund must be:
- UK property rich, which is when 75% or more of the value of the asset disposed of derives from UK land
- transparent for Income Tax purposes
What you’ll need
You’ll need the fund’s:
- name, country of residence and registered address
- Unique Taxpayer Reference (UTR), if you have it
You’ll also need to give each fund participants:
- name
- address (either their usual or last known place of residence, or their place of business)
- date of birth (if they are an individual)
- UTR, if you have it
Funds with 6 or more participants
If the fund has 6 or more participants you’ll need to give the information in a separate document, which you’ll be able to upload when you complete your transparency election.
The document must be in a file that is:
- either PDF, DOC, JPEG or XLS format
- not larger than 20MB in size
How to make the election
Use this form to make a transparency election for UK capital gains tax for offshore collective investment vehicles.
After you’ve made the election
You’ll receive a confirmation email to let you know that HMRC has received your form.
If the investors in the collective investment vehicle change, you do not need to make a new election or provide the consent of the new investors. They should be aware of this when they acquire an interest in the collective investment vehicle.
Once a transparency election has been made, the fund will need to complete an annual partnership return that shows the amount on which each partner is chargeable to tax on chargeable gains. Read paragraph 8(4) of Schedule 5AAA Taxation of Chargeable Gains Act 1992 for more information.
Updates to this page
Last updated 18 February 2022 + show all updates
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There is now only one form to make an election. It does not matter if you have a Government Gateway account or not.
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Information about what you’ll need to make an election what happens after you've made an election has been updated.
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Information about who can make an exemption election on behalf of a fund has been updated.
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First published.