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Non reporting registered (offshore) funds losses

Practical Issues
1nvest
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Non reporting registered (offshore) funds losses

#437575

Postby 1nvest » August 26th, 2021, 12:56 pm

As I understand it, if you hold a foreign fund that isn't UK reporting registered (offshore fund) then any capital gains are considered as being income taxable (not capital gains taxable).

If the holding yields a loss at sale can that loss be used to offset other domestic income (taxable pension and/or self employment income), or other domestic based capital gains, or is the loss simply ignored?

i.e. I'm having difficulty interpreting ...

https://www.gov.uk/hmrc-internal-manual ... s/ifm13550

IFM13550 - Offshore Funds: investors in non-reporting funds: computation of offshore income gain: losses
Regulation 42 of SI 2009/3001

If, the ‘basic gain’ (calculated under regulations 39 to 41) arising on the disposal of an interest in an offshore fund produces a loss, then the basic gain arising on the disposal is treated as nil. This means that, for the purposes of the regulations, no loss is to be treated as arising on a disposal and that any loss arising can be relieved only as a capital loss. The effect of this is that the capital loss cannot be offset against offshore income gains of the same or of a later period.

GrahamPlatt
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Re: Non reporting registered (offshore) funds losses

#437577

Postby GrahamPlatt » August 26th, 2021, 1:03 pm

Reads to me that you can’t offset any loss against income, but can against capital.


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