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Where Taxpayers and Advisers Meet

The joys of ERI

karl2134
Posts:8
Joined:Wed Nov 03, 2021 5:26 pm
The joys of ERI

Postby karl2134 » Wed Nov 10, 2021 4:11 pm

You never stop learning:-) I just learned that there is such a thing as ERI (Excess reportable income) and out of curiosity checked my positions against a KPMG database (https://www.kpmgreportingfunds.co.uk/). Well, one of those indeed carries an ERI! So I don't get any income now but I still have to include the ERI in my income/tax return and have to pay taxes on it. Lovely idea.

What's now going through my mind is the question what happens when I sell the position sometime in the future, say a few years from now . If there is a gain I may have to pay CGT -- but what about the ERI I already paid in the years before? Do I get this back? Is it deducted from the CGT? Or is there third or fourth possibility?

Anyone who knows ERIs... please help!

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: The joys of ERI

Postby pawncob » Wed Nov 10, 2021 4:44 pm

https://www.gov.uk/government/publications/offshore-funds-list-of-reporting-funds
https://forums.moneysavingexpert.com/discussion/6257397/excess-reportable-income
With a pinch of salt take what I say, but don't exceed your RDA

karl2134
Posts:8
Joined:Wed Nov 03, 2021 5:26 pm

Re: The joys of ERI

Postby karl2134 » Thu Nov 11, 2021 3:56 pm

Thank you v much for that 2nd link, this seems to pretty much answer my question.

There's one thing that I am not clear about and that is if I sell the position in question and have total gains in that year below the AEA or even a loss... then the ERI tax amounts I paid over the years is just lost, isn't it?


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