Offshore funds: distributing and reporting funds
Guidance and information about applications and reports. Links to lists of reporting and distributing funds.
Overview
An ‘offshore fund’ is defined in UK tax legislation. Broadly such a fund is an investment scheme of which the trustees or operators are not resident in the UK (for example, unit trusts operated under Jersey laws and Belgian SICAVs).
Other than ‘open ended’ investment companies, non-resident companies generally are not offshore funds but this should be checked with the fund manager. In certain circumstances, gains on disposals of holdings in offshore funds are taxable as income rather than as capital gains, namely where the investment has been in an offshore fund that has not been a distributing or reporting fund throughout the period of ownership of the investment. You can find lists of distributing and reporting funds on the investment schemes page.
Distributing funds
Full guidance on the distributing fund regime is contained in the Offshore Funds Guide.
For offshore funds wishing to submit an initial or annual application for distributing fund status you can complete and submit Form CISC3.
HM Revenue and Customs has set out its views in relation to late applications for distributing fund status.
Reporting funds
Full guidance on the reporting funds regime is contained in the Offshore Funds Manual.
If you are an offshore fund wishing to submit an initial application for reporting fund status use Form CISC1.
Reporting funds who submit their annual report can complete Form CISC2 to accompany the report.
The A to Z list of reporting funds.
For Reporting Funds intending prepare accounts using a Generally Accepted Accounting Practice (GAAP) other than International Accounting Standard, there is a list of acceptable GAAPs. And further advice can be obtained from the Collective Investment Schemes Centre (CISC).
Genuine diversity of ownership and equivalence conditions
Detailed guidance relating to clearances in respect of these conditions is contained in the Offshore Funds Manual.
Reporting funds needing such a clearance can apply by using the request for clearance Form (CISC4).