IFM37770 - Accruals basis elections: reporting

Annex – information for reporting in respect of accruals basis elections, deemed accrual of a loss, and sums accruing under this basis.

Elections in a return

Where an election is made in a return, please include it in the white space notes to the return using the following wording;

“I am making an election under section 103KFA(2) in respect of [name of investment scheme].”

This wording is not mandatory, but it will assist officers of HMRC to understand entries in your return.

Elections made in writing

If the election is not made in a return, please make elections in writing to either:

Carried Interest Accruals Basis Election

Wealthy National Operations

6th Floor Unity Square
Nottingham
NG2 1AW

Or [email protected] with the subject line ‘Carried Interest Accrual basis election’.

Reporting deemed accrual of a loss

Where deemed accrual of a loss (IFM37750) is to be reported, please include the following in the white space notes to the return with appropriate supplementary detail;

“I have calculated a deemed accrual of a loss under section 103KFD. This has accrued as a result of [briefly explain circumstances in sufficient detail for an HMRC officer to understand how the loss came about, which year(s) the accrued gains were reported and which investment scheme it relates to.]”

Reporting sums accrued under this basis

Where a sum is to be reported as accruing to an individual under section 103KFA, please include the following in the white space notes to the return;

“In the year 20[XX/XX] I have a deemed chargeable gain of £[insert sum] under section 103KFA in respect of [name of investment scheme].”

Reporting in respect of multiple investment schemes

Please repeat the wording in respect of each investment scheme.

Record keeping

Individuals are responsible for keeping their own accurate records in respect of the consequences of elections made under TCGA92/S103KFA.