Offshore investments: could your tax return require a second look?

HMRC has launched a campaign aimed at UK taxpayers with investments in overseas funds, prompting a closer look at how these investments are reported for tax purposes.

For investors, the important point is that offshore funds don’t all follow the same tax rules. The way a fund is classified can influence how returns are taxed, and the amount received by an investor may not tell the whole story.

If you hold investments in overseas funds, now is a good opportunity to revisit the information supplied by your fund manager and check that your tax reporting reflects the relevant rules.

This is particularly important if you have held an investment for several years or sold units during a previous tax year.

If a review highlights a potential error, the next step will depend on the circumstances and whether the relevant tax return can still be corrected.

Unsure how your overseas investments should be treated for tax?

Verallo can help you understand your reporting obligations and identify the appropriate next steps.

Get in touch with our chartered tax advisers today by emailing info@verallo.com or calling 0203 912 9933.