INTM162126 - UK residents with foreign income or gains: certificates of residence: for UK registered pension schemes: registered pension schemes pooled together through a common investment fund (CIF)

Registered pension schemes may sometimes pool some or all of their investments into a common investment fund (CIF). The CIF itself is not liable to tax in the UK and therefore is not a resident for the purpose of the UK’s double taxation agreements (DTAs).

HMRC cannot issue certificates of residence in the name of the CIF, but we can confirm whether the pension schemes, trustees or other persons who are liable to tax on the CIF’s income are UK resident. When making a request in respect of a CIF the authorised applicant must provide a schedule of the participating registered pension schemes, setting out for each -

  • the name of scheme
  • UTR
  • whether it is a trust, non-trust or other status (specify).

A certificate of residence may be issued using the following wording, listing the registered pension schemes that are members of the CIF under the appropriate bullets:

“The collective investment fund of …………………………… is not itself resident in the UK for the purposes of the UK/[name of other state] Convention.

However, I certify that to the best of HMRC’s knowledge, as at [date]

· the scheme(s) listed below:

- [Name of Registered Pension Scheme]

is/are resident in the UK,

· the Trustees of the scheme(s) listed below:

- [Name of Registered Pension Scheme]

constitute a body/bodies of persons resident in the UK,

· and the following persons:

- [name and capacity of person – such as ‘company name as provider of the… [name of Registered Pension Scheme]’]

is/are resident in the UK

in accordance with Article [number applicable to residence - usually 4] of the Convention in force between the UK and [name of other state].”

If all of the investors in the CIF are UK resident, the wording above can be replaced with:

“The collective investment fund of …………………………… is not itself resident in the UK for the purposes of the UK/[name of other state] Convention.

However, I certify that to the best of HMRC’s knowledge, the investor(s) as at [date] is/are resident in the UK in accordance with Article [number applicable to residence - usually 4] of the Convention in force between the UK and [name of other state].”

Following the Competent Authority Agreement dated September 2014 between the UK and the Netherlands, some CIFs established in the UK may be able to claim benefits under the UK/Netherlands DTA in their own right. Where a CIF is established in the UK and all the investors are pension schemes, charity organisations or other investors which qualify for benefits under the UK/Netherlands DTA, a certificate of residence may be issued using the following wording:

“I certify that to the best of HM Revenue & Customs’ knowledge [name of CIF] as at [date] is a UK Common Investment Fund within the meaning of the Competent Authority Agreement between the UK and Netherlands of September 2014.”