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Where Taxpayers and Advisers Meet

Excess Reported Income

NonDom41
Posts:49
Joined:Tue Nov 28, 2017 3:03 pm
Excess Reported Income

Postby NonDom41 » Sun Oct 11, 2020 8:31 am

The so-called "Excess Reported Income" from a foreign reporting fund has to be declared on the UK-income tax return. Is this "Excess Reported Income" subject to income tax or to capital gains tax ?

Ray Coman
Posts:24
Joined:Tue Oct 13, 2009 10:41 am
Location:The Gallery, 14 Upland Road, London, SE22 9EE
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Re: Excess Reported Income

Postby Ray Coman » Sun Oct 11, 2020 11:53 am

Fund distributions are usually treated as income much in the same way as a UK investment fund. Any profit on eventual disposal comes under the capital gains tax regime
Raphael Coman, ACCA, CTA
Tax Accountant

DavidTreitel
Posts:242
Joined:Thu Aug 16, 2012 4:31 pm

Re: Excess Reported Income

Postby DavidTreitel » Sat Oct 31, 2020 3:29 pm

The previous commentator might not be familiar with ERI. HMRC have - it is rumoured - been focusing on unreported ERI over the past couple of years. This is an example of a standard HMRC nudge letter regarding ERI: https://www.tax.org.uk/sites/default/files/Sample%20letter%20with%20factsheet%20Nov%202019.pdf.

Profits are only subject to CGT if the fund has reporting status. Non-reporting funds do not give rise to ERI.


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