UK Statutory Instrument
2009
United Kingdom
The Offshore Funds (Tax) Regulations 2009
At a glance
What's here
10 compliance obligations
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Schedules
Browse 10 other Schedules — structural / supplementary
(1) This paragraph applies in the case of an existing...
(1) This paragraph applies in the case of an existing...
In the case of a reporting fund which has an...
(1) This paragraph applies in the case of a distributing...
In the case of an exchange of an interest in...
(1) This paragraph applies in the case of an existing...
(1) This paragraph applies in the case of an existing...
(1) This paragraph applies in the case of an existing...
(1) This paragraph applies in the case of an arrangement...
General duties of reporting funds
- Your offshore reporting fund must prepare accounts, compute income, and report to participants and HMRC
Accounts to be prepared in accordance with acceptable accounting policy
- Prepare accounts in line with acceptable accounting standards
Change in accounting practice to a generally accepted accounting practice
- Notify HMRC when changing to a non-IFRS accounting practice
Duty to provide computation
- Submit annual reportable income computation to HMRC
Report to participants for a reporting period
- Send annual report to UK participants within 6 months of period end
Contents of report to participants: non-transparent funds
- Include required income and distribution details in annual participant reports
Lengthy periods of account where full information not available
- Use reasonable estimates when reporting income from long fund periods
Reporting requirements
- Provide annual reports and accounts to HMRC within 6 months
Information obligations of reporting funds
- Provide information to HMRC when requested about offshore fund compliance
Differences between reported income and reportable income
- Correct discrepancies between reported and reportable income for your reporting fund
Browse 143 other sections — procedural / definitional / commencement
Citation, commencement and effect
Structure of these Regulations
Definition of “offshore fund”
Classification of offshore funds
Treatment of umbrella arrangements
Treatment of funds comprising more than one class of interest
Meaning of “participant”
Meaning of “interest” (of a participant in an offshore fund)
Meaning of “guaranteed return fund”
Meaning of “market value”
Meaning of “transparent fund”
General interpretation
Transitional provisions and savings, repeals, abbreviations and general index
Structure of this Part
Meaning of “material disposal”
Treatment of certain amounts as distributions
The charge to tax
The charge to tax: further provisions
Income treated as arising under regulation 17: remittance basis
Application to gains of non-resident settlements
Application of transfer of assets abroad provisions
Application of certain provisions of TCGA 1992
Temporary non-residents
Regulation 23: supplementary
Application of section 13 of TCGA 1992
Exceptions from the charge
Trading stock etc.
Long-term insurance funds of insurance companies
Loans other than participating loans
Interests in transparent funds
Rights in certain existing holdings
Charitable companies and charitable trusts
Unlisted trading company exception
Unlisted trading company exception: the investment condition
Unlisted trading company exception: further provision
Application of this Chapter
Disposal of an asset: the basic rule
Provisions applicable on death
Exchanges and schemes of reconstruction
Exchange of interests of different classes
General provisions
The basic gain and its computation
Earlier disposal to which the no gain/no loss basis applies
Modifications of TCGA 1992
Losses
Special rules for certain existing holdings
Ambit of this Chapter
Treatment of the TCGA disposal: general rules
Modification of section 162 of TCGA 1992
Application of section 128 of TCGA 1992
Consequences of conversion for participants
Structure and application of this Part
Meaning of “reporting fund”
Meaning of “equalisation arrangements”, “full equalisation arrangements” and “equalisation amount”
Who may make an application
Conversion of non-reporting fund into reporting fund
Contents of an application
Form, timing and withdrawal of application
Response by HMRC to application
Appeal against rejection of application
Amending a statement relating to equalisation
Appeal against refusal of application to amend a statement
Effects of entry into the reporting fund regime
Change in accounting policy
Computation of reportable income: general
Treatment of capital items following IMA SORP
Treatment of other capital items and miscellaneous items
Effective interest income or comparable amounts
Income from wholly-owned subsidiaries
Income from other reporting funds
Index tracking funds
Income from non-reporting funds: first case
Income from non-reporting funds: second case
Income from non-reporting funds if first case ceases to apply
Treatment of reporting funds operating equalisation arrangements
Reporting Funds not operating equalisation: income adjustments based on reportable income for computation periods
Reporting Funds not operating equalisation: income adjustments based on accounting income for computation periods
Supplementary provisions: average number of units and computation period
Introductory
The equivalence condition
The genuine diversity of ownership condition
The genuine diversity of ownership condition: further provisions
Who may apply for clearance
Procedure for obtaining clearance
Circumstances in which clearance may not be relied upon
Treatment of investment transactions carried out by diversely owned funds
Meaning of “investment transaction”
Meaning of “relevant contract”: general
Meaning of “relevant contract”: options
Meaning of “relevant contract”: futures
Options and futures: further provisions
Meaning of “relevant contract”: contracts for differences
Interpretation of regulation 81(c)
Meaning of “units in a collective investment scheme”
Meaning of “transaction in a carbon emission trading product”
Transparent reporting funds
Reportable income: general
Adjustment in relation to income from other reporting funds
Adjustment in relation to income from non-reporting funds: first case
Adjustment in relation to income from non-reporting funds: second case
Meaning of “reporting period”
Funds which do not operate equalisation arrangements: income adjustments on the basis of reported income
Funds which do not operate equalisation arrangements: income adjustments on the basis of accounting income
Funds which do not operate equalisation arrangements: computation period
Contents of reports to participants: transparent reporting funds
Reported income: general provisions
Equalisation amounts not treated as distributions
Participants chargeable to income tax: corporate funds
Participants chargeable to income tax: other non-transparent funds
Participants chargeable to income tax: transparent funds
Participants chargeable to corporation tax
Disposals of interests
Deemed disposals of interests
Special provisions applying to charitable companies and charitable trusts
Treatment of financial traders if conditions specified in regulation 73 are met
Amounts brought into account in computing trading profits or losses of financial traders
Interests not within regulation 103
Meaning of “financial trader”
Types of breaches
Consequences of minor breaches
Provision of report that is incorrect or incomplete
Cases where information is not provided
Serious breaches
Consequences of serious breaches
Appeal against exclusion from the reporting fund regime
Termination by notice given by reporting fund
Reporting fund not complying with requirements
Meaning of “constant NAV fund”
General
Modified application of Chapter 2
Modified application of Chapter 3
Disapplication of Chapters 4 to 9
Modified application of Chapter 10
Disapplication of Chapter 11
Annual Payments – duty to deduct income tax
Consequences of reasonable but incorrect belief
Amendment of the Inheritance Tax Act 1984
Amendment of ICTA
Amendment of TCGA 1992
Amendment of ITTOIA 2005
Amendment of ITA 2007
Amendment of FA 2008
Amendment of CTA 2009
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