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HMRC internal manual

Savings and Investment Manual

Collective investment schemes: offshore funds: investor request for fund status

Investor request to consider fund status

The information in this manual applies to transactions up to 30 November 2009. The Offshore Funds Manual is currently being updated for the offshore funds regime from 1 December 2009.

The general rule is that the fund itself applies to HMRC for certification as a distributing fund. In some instances, a fund may meet the conditions but has not itself applied for certification. If a UK-resident investor disposes of a material interest in such a fund, they will be assessed to tax on the basis that any gain is an offshore income gain.

In these circumstances, there is no right of appeal against the assessment on the grounds that the fund should have been certified. Instead, the taxpayer may by notice in writing to HMRC require the Board to take action with a view to determining whether the fund should be so certified.

If a notice is received in a tax office, the taxpayer should be asked to supply the full name and address of the fund, and any supporting information he may hold by way of fund accounts, explanatory memorandum etc. These should be forwarded to the Collective Investment Schemes Centre Sheffield together with particulars of the asset disposed of, and the period for which it was held.