Tax on offshore fund (self-assessment)

tg99

Hi,

I think may have posted the below in wrong section (Savings & Investments) so trying my luck here:

First time I've held an offshore fund outside of a tax wrapper - it's the JOHCM Japan Hedged GBP fund. The consolidated tax certificate from iWeb shows a 'gross amount of chargeable payment' of c£100, witholding tax paid as £0, and thus 'net interest paid' also as c£100. As the fund is Ireland-domiciled then this looks correct given they do not charge a witholding tax (albeit they will likely have incurred such tax at the fund level on each dividend received from each Japanese company but I cannot reclaim this).

I was looking where to declare this on my self assessment form and it says you do not need to include under 'foreign income' if it's a TAXED foreign dividend below £300 (and thus instead you put it under the dividends section where you put all your UK dividends). However, as this c£100 has not actually been taxed given witholding tax rate was 0% then does this mean that even though it's below £300 I still need to put it in the foreign income section? And I also see that iWeb are calling it a net interest payment not a net dividend payment which affects where I declare it (i.e. under dividends or interest) and the tax rate - but I'm not sure this is correct as this is stock fund not a bond fund and thus should be dividend not interest income?

I also see that iWeb have my units down as Group II not Group I which would make sense as I bought the fund part way through an accounting period. However, I would also then expect my total payment to be part dividend and part equalisation (as is the case for onshore funds on this certificate) but equalisation shows as £0. Is this something related to offshore funds or because I hold Distribution units rather than Accumulation units?

Thanks