IFM13414 | Offshore Funds: participants in offshore funds: the charge to tax on disposal of an interest in a non-reporting fund: the charge to tax: income tax

Regulation 18 of SI 2009/3001 - Participants within the charge to income tax

Offshore income gains are charged to tax as miscellaneous income under Chapter 8 of Part 5 of ITTOIA 2005 for the year of assessment in which the disposal is made, but sections 688(1) and 689 of ITTOIA do not apply (regulation 18(3)).

Regulation 19 - Offshore income gains: remittance basis

For tax years up to 2024/25, where an individual is not domiciled in the United Kingdom and the remittance basis applied to the individual for a tax year, then the amount of any offshore income gain arising in that tax year is treated as relevant foreign income of the individual (Chapter 2 Part 8 ITTOIA). For details of the remittance basis of assessment which was available prior to 6 April 2025 see RDRM3000

From 6 April 2025, all UK residents are taxed on the arising basis of assessment on their worldwide income and gains unless they are a qualifying new resident who is eligible for exemption from tax on their foreign income and gains in the first 4 years of their UK residence under the new Foreign Income and Gains (FIG) provisions. Offshore income gains are capable of being qualifying foreign income which can be exempted where arising to such qualifying new residents (s845H ITTOIA 2005). For more details regarding the FIG provisions, see RFIG40000.

In a case where the individual is the beneficiary of a non-resident settlement and an offshore income gain arises to the trustees of the settlement then different rules apply - see IFM13420.