Disposal of non-reporting offshore fund

[EHM]

I'm slowly getting out of some non-reporting offshore funds, some of which I might end up selling at a loss. It's clear from HMRC's Investment Fund Manual and the legislation that I need to report any gain as an offshore income gain but it's less clear how/if I report the loss. IFM134100 states that any loss on disposal "may be treated as a capital loss for the purposes of TCGA" but that doesn't read as a definite statement that losses stay in the CGT regime. Can anyone point me to any authoritative source that makes it clear how HMRC views losses on disposal of non-reporting offshore funds please?

[AGoodman]

I believe the way it works is that the Regulations basically ignore a loss, leaving it to be addressed under the capital gains rules. The legislation is the most authoritative source but it could be written more clearly:

Para 42(3) of the The Offshore Funds (Tax) Regulations 2009: https://www.legislation.gov.uk/uksi/2009/3001/regulation/42

"(3) Accordingly, for the purposes of these Regulations, no loss is to be treated as arising on the disposal."

This is effectively confirmed at IFM13550.:

"If the ‘basic gain’ (calculated under regulations 39 to 41) arising on the disposal of an interest in an offshore fund produces a loss, then the basic gain arising on the disposal is treated as nil. This means that, for the purposes of the regulations, no loss is to be treated as arising on a disposal and that any loss arising can be relieved only as a capital loss. The effect of this is that the capital loss cannot be offset against offshore income gains of the same or of a later period."

[EHM]

Thank you for this. The reference in IMF13550 seems to be the only pointer back to Capital Gains, which makes me slightly suspicious that HMRC's interpretation is actually that the losses cannot be used at all. Though that maybe is more a reflection of how I view HMRC 'guidance' than anything else.
Appreciate your help.