C1.620 Investments in offshore funds
An offshore fund is an investment vehicle, such as a foreign unit trust or a foreign open-ended investment company (also known as an OEIC). These funds are UK non-resident and so outside the scope of direct UK taxation (except insofar as non-resident persons can otherwise be taxable in the UK). For the liability of the offshore fund to UK tax on chargeable gains, see C1.209.
For the detailed definition of an offshore fund, see B5.7021.
Types of offshore funds
There are different types of offshore funds and it is the type of fund that determines the UK tax treatment for the investor:
- Ìý
•ÌýÌýÌýÌý reporting funds—an offshore fund that has to submit details of its reportable income to investors within six months of each period end. It is also required to confirm whether it remained a reporting fund at the end of that period2. See B5.715–B5.719
- Ìý
•ÌýÌýÌýÌý non-reporting funds—an offshore fund that is not a reporting fund3
Reporting funds and non-reporting funds
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