Guidance

Elect an offshore collective investment vehicle for tax exemption on UK capital gains

Find out how to make an exemption election for an offshore collective investment vehicle.

• From: HM Revenue & Customs
• Published: 24 February 2020
• Last updated: 13 March 2020 — See all updates

Before making an election, you should read the legislation in Schedule 5AAA to the Taxation of Chargeable Gains Act 1992.

Who can make the election

You must be the fund manager or authorised to act on behalf of the fund manager to make an exemption election on behalf of a fund.

The fund must be a collective investment vehicle and one of the following:

• a unit trust
• an open-ended investment company
• a contractual arrangement
• a body corporate

Qualifying conditions

To qualify for election, the fund must be UK property rich (75% or more of the value of the assets disposed of derives from UK land) and meet one or more of the following:

• genuine diversity of ownership condition
• recognised stock exchange and non-close conditions
• UK tax and non-close conditions

What you’ll need

You’ll need the:

• fund’s name, tax residence or place of establishment, and registered address
• fund’s UK Unique Taxpayer Reference (UTR), if held
• name, address and percentage owned by the fund for each entity covered by the election - if the election covers more than 5 entities you’ll need to upload these details in a document

For each fund participant with one or more relevant disposals made on or after 6 April 2019, you’ll need to provide their:

• name
• date of birth
• address
• UK UTR, if held
• total relevant disposal value
• total capital gain
• total capital loss

If you are providing disposal details for more than 5 fund participants, you’ll need to upload these details in a document.

How to make the election

If you already have a Government Gateway user ID and password use this form to make an election.

If you do not have a Government Gateway user ID and password you should use this form to make an election.

After you have made the election

You’ll receive a confirmation email to let you know that we have received your form.

You’ll need to register for the Secure Data Exchange Service (SDES) and send exemption election reports to HMRC.

Published 24 February 2020
Last updated 13 March 2020 + show all updates

1. 13 March 2020

   Information about who can make an exemption election on behalf of a fund has been updated.

2. 24 February 2020

   First published.