IFM12152 | Offshore Funds: Introduction: Overview of the offshore fund rules: classification of funds

The offshore fund rules only apply to holdings in collective investment vehicles that come within the definition of an ‘offshore fund’ as set out at section 355 (1) TIOPA 2010 - see IFM12200 onwards.

UK investors should be able to get this information from their adviser or directly from the fund itself. It is the investor’s responsibility to ensure that they know whether they hold an investment in an offshore fund, as defined.

Once the UK investor has determined that a particular arrangement is an offshore fund, they will need to determine whether it is a non-reporting fund or a reporting fund. A fund will be a non-reporting fund for a period of account unless Part 3 of The Offshore Funds (Tax) Regulations applies. There is a list of funds that come within the definition of an offshore fund and have successfully applied for reporting fund status on HMRC’s area of the GOV.UK website. The list is updated monthly.