Are all "funds" funds?

[pledger]

Hello -

UK resident, I have a managed portfolio in Switzerland. The Bank churns the holdings quite a lot (to good ends) but it means that reporting of dividends and CG to HMRC is getting onerous, and I am considering switching everything into a "fund" managed by the same bank.

My question is, will the HMRC accept top level reporting - one number each for dividend, CG etc (like they do for a UK fund) or would they require full transparency and require the underlying transactions to be disclosed (which would probably be even more numerous than in my present situation)?

Yes, I could ask them, but as we all know, that is easier said than done

Thanks for any thoughts on this

[DavidTreitel]

Will the new investment wrapper be a UK reporting fund or a non-reporting fund? If a non-reporting fund, why is it considered suitable?

[pledger]

Thanks David - that question has given me the key words to search the HMRC pages.

It is looking like it would be a non-reporting fund (ISIN number is not on the giant spreadsheet), so I just have to work out what the UK tax consequences of being a non-reporting fund are. It is hard going for a layman to interpret the HMRC manual

Thanks again

Phil

[maths]

It seems you want to effectively have a single investment. If you invest in a fund or fund of funds that's what you will have (be they shares or units).

You will then not need to worry for tax purposes what investments are bought and sold by the fund or funds. You tax exposure will be simply dividends and/or interest and gains/losses (if sold) arising on your investment.

This applies whether the funds are reporting or non-resporting. The key distinction here is that on the latter any "gains" made on sales by you will be subject to income tax not capital gains tax.

[pledger]

Thanks for your plain English reply, "maths".

So if I stay within the 20% income tax band there is no effect on total tax, and I have a whole lot less reporting to do. If I go above this (40% tax bracket) I will be losing out.

P

[maths]

Whether you invest in a reporting fund or directly into many different shares etc the income tax and capita gains tax treatments are the same including the same rates of tax.

Non-reporting funds are different.

But basically you should have less reporting matters.

As always,depends upon the facts,