Offshore funds: Applications for “distributing” fund status

Applications for certification as a distributing fund should

  • show that the fund is within the offshore funds provisions
  • set out clearly and specifically all the information necessary to show that the relevant tests are met
  • be supported by relevant documents
  • be made within the appropriate time scale – within 6 months of the end of the account period
  • be made for each account period for which certification is desired.

There are two things worth remembering

  • A fund has to apply for distributing fund status for each account period. If it fails to apply for, or obtain, distributing fund status for any one account period during which an investor owns a material interest, then on disposal of the interest that investor is liable to tax on any gain as income and not as a chargeable gain.
  • Providing the full information in connection with an application first time is likely to reduce
  • the time it takes to process that application
  • the need for enquiries.

RKG Consulting can assist with the application process.