Reporting offshore funds—reporting duties (participants and HMRC)
Produced in partnership with Michael Alliston of Herbert Smith Freehills LLP
Reporting offshore funds—reporting duties (participants and HMRC)

The following Tax guidance note Produced in partnership with Michael Alliston of Herbert Smith Freehills LLP provides comprehensive and up to date legal information covering:

  • Reporting offshore funds—reporting duties (participants and HMRC)
  • Reports to participants
  • Reports to participants—basics
  • Reports to participants—contents of the report
  • Reports to participants—long accounting periods and incomplete information
  • Reports to HMRC
  • Reports to HMRC—annual reporting requirements
  • Reports to HMRC—obligation to provide additional information

This Practice Note describes:

  1. the reports that reporting funds must make available to certain of their investors, for each reporting period, to enable those investors to complete their own tax returns that include their proportionate share of the reportable income, and

  2. the reports that funds must provide to HM Revenue and Customs (HMRC), and obligations to provide other information to HMRC, on request, in order for HMRC to ensure that the offshore regime functions properly

Unless specifically stated otherwise, references in this Practice Note to the Regulations means the Offshore Funds (Tax) Regulations 2009, SI 2009/3001.

Reports to participants

The rules for the reports to be made by a fund to its participants are set out in Chapter 7 of Part 3 of the Regulations.

Issues to be addressed when considering preparing and distributing reports to participants include:

  1. basic considerations (ie the length of the period being reported upon and how to make the report available)

  2. the contents of the report, and

  3. special rules that apply where long accounting periods are involved

Reports to participants—basics

Reporting funds are required to make available a report, for each ‘reporting period’, to each of their relevant participants (that is, participants resident in the UK or that are themselves reporting funds) who hold an interest in the fund at the end of the reporting period

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