tax liabilities on offshore assets

Aidanmc

I received a letter from hmrc about possible offshore assets income and gains and about making a disclosure through the worldwide disclosure facility.

I have some investment in offshore investment fund. Tax would only be payable when the assets are eventually sold and over the cgt threshold. Is that correct?
I would also have received a small amount of interest from an Irish bank account so i assume this would need declaring.

Keep_pedalling

You probably also also have dividends on that OS fund to declare.

Aidanmc

Its actually an accumulation type rather than income.

Keep_pedalling

Aidanmc wrote: »

Its actually an accumulation type rather than income.

The fact that dividends are reinvested rather than paid in cash makes no difference as far as taxation is concerned.

Aidanmc

Keep_pedalling wrote: »

The fact that dividends are reinvested rather than paid in cash makes no difference as far as taxation is concerned.

I didn't realise that....thanks


I have just looked through my statements for that investment fund and see no sign of dividends.
The fund info does state that dividends are paid in january and july. The number of units remains the same!

laticsforlife

If you took out the profit and brought it back to the UK then thats a remittance and you could choose the RBC (Remittance Basis Charge) - but that can be up to £60,000 plus the tax on those remittances.

the alternative is to tax yourself on the (worldwide income) arising basis, so we go back to whatever it's made per year, and yes that is taxable presumably as a CG, so you have allowances for that too.

Probably a question for a competent offshore specialist accountant.

Cook_County

If this a reporting fund there may be ERI to report in addition to dividends paid. HMRCs nudge campaign has no statutory basis, so whatever you do never ever return HMRCs fake "certificate". If the numbers are significant take professional advice from someone familiar with offshore funds.