International Exchange of Information Manual

IEIM402220 - Reportable Information: Custodial Account: Gross Proceeds

Reportable Information: Custodial Account: Gross Proceeds

A Custodial Institution [see IEIM400640] is required to report the total gross proceeds from the sale or redemption of financial assets held in a Custodial Account [see IEIM401620] during the reporting period [see IEIM400520 for FATCA and IEIM400580 for CRS]. This is without regard to whether or not the Account Holder [see IEIM403300] would be subject to tax in the UK on the sale or redemption of the financial asset.

For reporting in respect of the calendar year 2026 onwards, gross proceeds from the sale or redemption of financial assetsare not required to be reported to the extent that such gross proceeds are reported by the Reporting Financial Institution under the Crypto-Asset Reporting Framework (CARF). However, a UK Financial Institution may elect to report such gross proceeds under the CRS as well as under the CARF, in relation to all reportable accounts or any clearly defined group of accounts.  

Example: 

An individual, A, holds a Custodial Account with C, a custodial Crypto-Asset exchange that is a Reporting Financial Institution. At the beginning of the year, A holds 5 units of security token X in the Custodial Account with C. Throughout the year, A acquires an additional 3 units of security token X and disposes of 2 units. C reports the disposals and acquisitions of security token X under the Crypto-Asset Reporting Framework and is not required to report the gross proceeds from the disposals of security token X under the CRS. Cis howeverrequired toreport the account balance of the Custodial Account under the CRS.

The total gross proceeds from the sale or redemption of a financial asset is the total amount credited to the account of the person entitled to the payment without regard to any sums netted off against the payment to satisfy outstanding liabilities. For example, a loan used to fund acquisition of the asset may be repaid from the proceeds of sale. This must not be deducted from the amount reportable.

Commissions and fees paid with respect to the sale or redemption of the asset may be taken account of in arriving at the gross proceeds of sale.

Where the financial asset that is sold or redeemed is an interest bearing debt obligation the gross proceeds should include any interest that has accrued between interest payment dates.