Excess Reportable Income

Offshore Funds and Excess Reportable Income (ERI)

(funds not domiciled in the UK)

Brayan & Spencer Associates receive a lot of calls in relation Excess Reportable Income (ERI). UK taxpayers with investments in offshore reporting funds will be paying tax on their share of a fund’s reportable income, and capital gains tax on any gain on disposal of their shares, units, Land & Buildings or Holiday Homes. This measure will change the calculation of reportable income especially, where excess performance fees are charged by portfolio managers to reduce or eliminate investors’ reportable income. Excess fees will no longer be tax deductible against reportable income or gain on disposal. Offshore funds have to publish details of Excess Reportable Income. This means the amount of income the fund receives but does not distribute during its reporting period. Income which is not distributed to you as an investor, must be declared to HMRC on the self-assessment return. The relevant date for including ERI on your tax return is the fund distribution date.

Your investment portfolio held with fund manager should contain offshore reporting status funds with ERI. We will help you to complete your tax return and will include this in the foreign pages of your UK 2016/17 tax return as either interest or dividends.

If you do not have a tax adviser, then our Tax department of Brayan & Spencer Associates receive would be delighted to assist you.