IFM09310 | Taxation of investors: Income

The RIF is transparent for the purposes of tax on income. This means participants are taxable on their share of the fund’s income as it arises. This applies to both corporate and individual participants. Any income received will be subject to the normal applicable tax treatment applied to that type of income in the hands of a participant.

Where the RIF has several different types of income then a participant is taxable on each type of income separately as it arises irrespective of whether the income is immediately, or at any time, passed to the participant.

This means that participants are relying on the operator of the RIF to provide details of the income arising to them. Regulation 35 requires the operator of a RIF to provide sufficient information to participants in the scheme to enable those participants to meet their tax obligations in the United Kingdom with respect to their interests in the scheme. Details are required in relation to each accounting period (IFM09700).