In broad terms, a ‘reporting fund’ for UK tax purposes is an offshore fund that meets certain upfront and annual reporting requirements to Her Majesty’s Revenue and Customs (HMRC) and its investors. Such annual duties will include calculating and reporting the income returns of the reporting share class for each reporting period on a per-share basis to all relevant investors. UK investors who hold their interests at the end of the reporting period, to which the reported income relates, will be subject to income tax or corporation tax on the higher of any cash distribution paid and the full reported amount. The reported income will be deemed to arise to UK investors six months after the reporting period.
As a general rule, each Capital Group Luxembourg fund and their respective sub-funds intend to obtain reporting fund status for the following share classes for every period of account ("reporting period") that they are available and active:
B, C, I, Q, X, Z, ZL and their equivalent distributing share classes (d and gd)
The equivalent hedged share classes of the above listed share classes in GBP, EUR, USD and CHF (for C and I, only those that are hedged back into GBP).
Other specific classes may be added as required by UK investors.
The investor tax report will be made available on the website here in the Tax centre, within the six months following the end of the reporting period. However, if you require this information in writing, please contact Capital Group's Investor Services team on +41 22 807 4800, or, if you are an institutional client, your Relationship Manager. Alternatively, you can email us.
The investor tax reports are published for each reporting share class for each reporting period. They comprise the "distributions" per share made by the fund during the period, as well as the "excess reportable income" per share at the end of the reporting period. The excess reportable income is broadly based on the net income of the fund in excess of distributions made during the reporting period. UK investors must include both the actual distributions received, as well as the excess of reportable income in their tax returns on which they will be liable to pay income or corporation tax as appropriate.
On disposal of an interest in a reporting fund share class, a UK individual investor will be subject to capital gains tax on any gain/loss providing that the share class in question had been a reporting share class for the entire period of investment. However, any gain on disposal by a UK individual investor of an interest in a non-reporting share class will be treated as income for UK tax purposes and therefore subject to income tax. For UK corporate investors, disposals of interests in reporting funds will be treated as chargeable gains and disposals in non-reporting funds will be treated as taxable income.