HMRC has confirmed to the CIOT that letters will be issued in early November to a subset of the ‘Wealthy’ population (identified as those dealt with by HMRC’s Wealthy & Mid-sized business unit) who may have invested in Offshore Investment Funds.
The letters will give details of the differing tax treatment of the amounts gained from investments in these funds and that this may depend on whether the funds are regarding as ‘approved’ by HMRC. Due to the complexity of these rules, HMRC suggests that mistakes can be made in this area, when completing tax returns.
HMRC’s letters will give advice on how to complete tax returns in respect of these funds going forward and the timing of the issue of these letters (early November) will allow taxpayers to ensure their 2018/19 tax return is correct when filed by the 31 January 2020 deadline.
HMRC’s letter will also include advice on how to amend previous tax returns, whether through a digital tax account (where time limits allow), via the digital disclosure service or through an agent.