TAX TREATMENT OF ETF, UCITS AND OTHER FUND INVESTMENTS
Exchange Traded Funds (ETFs) & Other Fund Investment Products – Offshore Fund Tax Regime
Our online system caters for the tax reporting required for ETF, UCITS and other fund investments. Through our traditional tax practice we have extensive knowledge and experience in this area and assist a large number of clients who hold these types of investments to meet their tax reporting requirements each year.
A particular set of rules, known as the offshore fund tax regime, can apply to these types of investments depending on the nature and location of the fund investment. Where they apply, the rules can give rise to a number of tax implications –
- 41% income tax on any income or gains
- Deemed disposal of units on 8th year anniversary of purchase
- No relief for losses made on sale of units
- Purchases of units to be reported even where no income or gains
- Non-domiciled individuals cannot claim the remittance basis of taxation on these investments
If you acquire units in an investment product that is subject to the offshore fund rules then you must file a Form 11 income tax return for the year via the self-assessment system. Payments from and gains from such investments must also be reported on your Form 11.
The financial advisor arranging your investment will often explain the tax rules involved which can be complex. However if you are purchasing units in an ETF, UCITS or other fund investment directly yourself using an online brokerage or online trading platform then the appropriate tax treatment can be more difficult to ascertain but we can assist you with this – please see here for further details.
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