IFM12536 - Offshore Funds: Reporting funds: computation of reportable income: adjustments for special classes of income: from other reporting funds

Regulation 68 of SI 2009/3001

Where a reporting fund (RF1) has an interest in another reporting fund (RF2), the income arising to RF1 is the amount reported to it by RF2 - i.e. RF1’s share of RF2’s reported income.

The amount (if any) by which RF1’s proportionate share of the reported income of RF2 for a period of account of RF2 exceeds any actual distributions made in respect of that period should be added to the amount specified in regulation 63, after that amount has been adjusted in respect of capital amounts under regulations 64 and 65 (regulation 68(2)).

This ‘excess amount’ should be added in the period of account for RF1 in which the fund distribution date of RF2 falls or, if earlier, the date on which the reported income from RF2 is recognised (in respect of the reporting period) in the accounts of RF1 (regulation 68(3).

The “fund distribution date” means the date 6 months after the end of the reporting period in which the income arose (regulation 94(4)).

In the event that RF2 fails to make a report available in accordance with regulation 90(5) (IFM12622), RF1 must include an estimate in its own reported income and then make any necessary correction in the first period it receives the required information from RF2 (regulation 68(3) and (5)).