Foreign Income 52 - Gains on disposals of holdings in offshore funds

You may need to make an entry if you've disposed of an interest in an offshore fund. The rules relating to this can be quite complex; HM Revenue and Customs has published guidance in its Offshore Funds Manual and Savings and Investments Manual or alternatively you should ask your tax adviser. The following is only a general overview.

The term 'offshore fund' is defined in UK tax legislation; broadly such a fund is an investment scheme of which the trustees or operators are not resident in the UK (for example, unit trusts operated under Jersey laws and Belgian SICAVs are offshore funds). Other than 'open ended' investment companies, non-resident companies generally aren't offshore funds but you should check this with the fund manager or your tax adviser.

In certain circumstances, gains on disposals of holdings in offshore funds are taxable as income instead of being taxed as capital gains. If that is the case, you should enter the amount of the gain in this field. If not, give details of the disposal and the gain or loss in the Capital gains summary section.

Any income you receive from the offshore fund including 'reported income' should be returned by selecting the appropriate type of income in the 'Foreign income details' section.

Discretionary income payment from non-resident trust

If you've received an income payment from a non-resident trust, Help Sheet 262 - Income and benefits from transfer of assets abroad and Income from non-resident trusts has more details on how to complete this section.