Non-Reporting Overseas Funds Gains and FTCR

[PPitstop]

Hello, I have not done a self assessment for years as I am on PAYE but I could use some help as doing one online this year.

I had some old mutual funds overseas which I just sold. From what I gather they were ‘non-reporting funds’. I understand that the rules are the gain is charged to income rather than CGT. My questions are:

1. Do I calculate the gain by converting the purchase price to sterling using exchange rate at the time and deducting that from the sale price in sterling on sale date? OR Do I calculate the gain in local currency and covert that to sterling using the sale exchange rate only?

2. I gained the equivalent of £2300 but paid about £400 in local tax (CGT). There exists a DTA but as the gain is treated as income not CGT for UK tax, I am unsure if I can claim income tax FTCR?

That you!
PP

[lostdude]

Interesting questions. Bit worrying that you have not received any reply yet.

I am not a tax professional - but just trying to help and participate in the discussion - interested since I may face the same problem in future. I also hold non reporting funds.

Asked chatGPT, it has confidently given answers, and cited HMRC links at the end. However I am unable to find the claimed information in the actual links. Maybe we need to read the linked documents : https://chatgpt.com/share/67300ecb-d268-8002-bda2-b82f9b8e4ed9 (scroll to the very end. I have asked some other non related questions at the top).

You may want to try posting on HMRC forums. The questions are simple enough and you may get an official response from HMRC staff.

Good luck.

[PPitstop]

From what I gather (and with contradictory info from HMRC) is that:

1) Yes, calculate as a CGT (in sterling at time of purchase and deduct from sale in sterling). It's taxed as income and is reported under 'Other Foreign Income and Gains' section of SA106.

2) In theory FTCR is available BUT there is nowhere to specify it in 'Other Foreign Income and Gains' so is not automatically calculated but you but can add the FTCR figure in Box 2 (if paper return or manual FTCR at the end if submitting it online). I am presuming the max FTCR rate is the income one not CGT. The alternative is deduction method.