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HMRC internal manual

Offshore Funds Manual

HM Revenue & Customs
, see all updates

Reporting funds: tax treatment of participants in reporting funds: Charitable companies and charitable trusts

The regulations provide for an exception to the charge to tax on disposal of an interest in an offshore reporting fund where the participant is:

  • A charitable company, or
  • The trustees of a charitable trust.

If a charitable body subsequently realised a capital gain on which it would not be exempt because the gain was not applied for charitable purposes then it would not be entitled to deduct amounts reported under section 94(1) as it would not have been charged to tax on such sums (See OFM27500).

The definitions of a “charity” and “charitable company” are as set out in S506 ICTA 1988.