Should the tax year be the same for Capital gain and Interest for an Offshore reporting fund?

megatower

I have a couple offshore reporting (fixed-income) funds which are still open, but I have made a couple of sells in the middle. The tax year for the interest or the ERI (Excess Reportable Income) should be determined by the fund distribution date (FY2025-2026). The data for the sells would however fall into the previous tax year (FY2024-2025). 

Would the same tax year apply to the capital gain? The tricky part for my case is the ERI information isn't available yet to compute the capital gain. Would it better to make an estimate ERI now for the capital gain and make correction when it's published?

aroominyork

If you are talking about CSH2, there are two distributions dates in 2025/26. The reporting date of 31/10/24 meant a distribution date (six months later) of 30/4/25; the new fund manager (Amundi) brought forward the reporting date by a month to 30/9/25 so the distribution date falls on 30/3/26, hence two distribution dates during this transition year. ERI for the second has not yet been announced, and we had this long thread discussing whether the ERI is interest or dividend. 

The tax year for CGT purposes is the year during which you sell, so it is very possible for it to be the year before the ERI's distribution. Tax returns are not my specialty, but I believe you have the option of submitting now and amending later. 

megatower

Thanks aroominyork, it isn't CSH2. It has only one distribution per year so there is is more chance that CGT and interest could fall into different tax years, and longer gap until the ERI number to be available. 

masonic

HMRC advise entering an estimated ERI figure if the actual figure isn't available by the time you have to file your tax return. I would err on the side of overestimating your gain.

megatower

That's great and thanks a lot.

"Overestimating you gain" - did you mean for the ERI or CGT?

masonic

megatower said:

That's great and thanks a lot.

"Overestimating you gain" - did you mean for the ERI or CGT?

I meant for CGT, such that if anything HMRC will owe you a little money when you amend, rather than you underpaying.