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HMRC internal manual

Offshore Funds Manual

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HM Revenue & Customs
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Reporting funds: computation of reportable income: Equalisation: Amendments to original application of reporting funds

A reporting fund may, if it wishes, apply to amend any statements made under regulation 53(1)(h) to (l) (see OFM24640) in relation to subsequent reporting periods. This application must be made in writing to HMRC before the end of the first reporting period in relation to which the amendment is to have effect (regulation 56A(1).

HMRC will then consider and respond to the application within 28 days of receipt.

Amendment to operate full equalisation arrangements

If a fund is providing an amended application because it intends to operate full equalisation arrangements (see OFM24630) no further information is required. HMRC must accept such a request within 28 days of receipt of the application.

Amendment where fund does not intend to operate full equalisation arrangements

If an offshore fund wishes to amend a statement relating to equalisation where the fund does not intend to operate full equalisation arrangements the process is as follows:

  1. The application must be made by the manager of a reporting fund specifying the reason for the application and the amendments sought to the statement to apply in relation to subsequent reporting periods.
  2. Within 28 days of receipt HMRC must accept, reject or ask for further information to consider the application.
* If HMRC ask for further information, HMRC will either accept or reject the application within 28 days of the further information being provided.
  1. HMRC will not accept an application if:
* they consider that the application was made for reasons other than commercial or administrative reasons
* An application was accepted by HMRC for a reporting fund to amend these equalisation arrangements in relation to either of the previous 2 reporting periods.

Appeals against refusal of application to amend a statement

Where HMRC reject an application to amend any statements under regulation 53(1)(h) to (l) an appeal can be made by the manager.

The appeal must be given to HMRC within a period of 42 days beginning with the day on which the notice rejecting the application was given.

On an appeal, the tribunal may either uphold or quash the rejection of the application. If the tribunal quashes the rejection of the statement it is treated as if HMRC had accepted the application submitted.