Offshore funds - UK Reporting Status

tg99

Apologies if this is widely known, but have been doing some research on some potential offshore fund vehicles and reminded me of the UK Reporting Status issue which does not seem to be particularly well advertised to retail investors in my opinion. Hence for those unaware and considering buying an offshore mutual fund / ETF, e.g. one listed in U.S., Ireland, Luxembourg etc, it is important to check whether the fund has UK Reporting Status as if it does not then when you come to sell it, any gain will not be treated as a capital gain but will instead be treated as income and thus taxed via income tax which will typically be more costly (especially if you had not used up your annual capital gains allowance). You can check if an offshore fund has this status here:

https://www.gov.uk/government/publications/offshore-funds-list-of-reporting-funds