Reporting funds: application for reporting fund status: HMRC responses to applications - Regulation 55
HMRC must, within 28 days beginning with the day on which it receives the application, give notice to the person who made the application -
- accepting the application;
- rejecting the application; or
- asking for further information in order to consider the application.
HMRC will not accept an application if -
- any of the items required together with an application (set out in regulation 53 - see OFM21300) is not supplied, or
- it is considered that there will be a significant difference, in computing reportable income (see OFM24000 onwards) between the result given by the use of international accounting standards (‘IAS’), and the result given by the use of the accounting practice specified in the application and by the use of the entries in the fund’s accounts, specified in the application, that are considered to equate to “total comprehensive income for the period” as that expression is used in IAS (see regulation 63).
- A fund intends to make income adjustments on the basis of accounting income, and HMRC do not consider it reasonable to expect that the difference between the amount of reported income per unit calculated using this method and the amount of reported income per unit calculated on the basis of reported income will be 10% or less of the latter of those amounts.
Where HMRC have asked for further information (under paragraph (1)(c) of regulation 55), and the person who made the application provides it within a period of 28 days (beginning with the day on which HMRC asked for it, or within any longer period it may have agreed) then HMRC will, within 28 days beginning with the day on which they receive the further information, give notice to the person who made the application either accepting or rejecting the application.
There is an appeal process if HMRC rejects an application - see OFM21600.
There is a list of offshore funds that have successfully applied for reporting fund status on HMRC’s website. The list (PDF 21KB) is updated on a monthly basis.