Money basics · tax year 2026/27
What is UK reporting fund status?
UK reporting fund status is an HMRC approval for a fund based outside the UK, such as an Irish or Luxembourg ETF, under which a UK investor’s gain on selling is taxed as a capital gain rather than as income. A reporting fund also reports its income for each period, and income it kept rather than paid out is taxed on investors who hold it outside an ISA.
- Gain on selling a non-reporting fund
- Taxed as income
- An offshore income gain is treated as income arising when the holding is disposed of, so income tax rates apply (regulations 17 and 18, SI 2009/3001). A gain on a reporting fund is a capital gain.
- HMRC Investment Funds Manual IFM13412: the charge on an offshore income gain, checked
- Reporting fund’s report to investors
- Within 6 months
- Of the end of each reporting period (regulation 90, SI 2009/3001). Income the fund kept is treated as paid to investors on the fund distribution date, six months after the period ends.
- legislation.gov.uk: SI 2009/3001, regulation 90 (report to participants for a reporting period), checked
- HMRC list of reporting funds
- Updated monthly
- A spreadsheet of offshore funds approved as reporting funds, searchable by ISIN. Last updated 09/09/2026 when checked.
- HMRC: Offshore funds: list of reporting funds, checked
- Capital Gains Tax annual exempt amount
- £3,000
- Gains inside an ISA or pension are not subject to Capital Gains Tax.
- GOV.UK — Capital Gains Tax allowances, checked
On this page
What counts as an offshore fund
For UK tax, an offshore fund is a mutual fund based outside the UK: a company resident outside the UK, a unit trust with trustees resident outside the UK, or another co-ownership arrangement under another territory’s law (section 355 of the Taxation (International and Other Provisions) Act 2010).
Most ETFs listed in London are in this group. Of the 2,442 ETFs with a London closing price in Fundology’s data in the two weeks to 09/10/2026, 1,756 were domiciled in Ireland and 501 in Luxembourg.
Reporting and non-reporting funds
An offshore fund can apply to HMRC to be approved as a reporting fund, under the Offshore Funds (Tax) Regulations 2009 (SI 2009/3001), in force since 01/12/2009. For a UK individual the difference shows when the holding is sold:
- Reporting fund: the gain is a capital gain, under Capital Gains Tax (annual exempt amount £3,000).
- Non-reporting fund, or one that was non-reporting for part of the time it was held: the gain is an offshore income gain, treated as income arising at the time of the sale and taxed at income tax rates.
Excess reportable income
A reporting fund works out its reportable income for each period. Where that is more than it paid out, the excess is treated as an extra distribution to the investors who held at the end of the period, made on the fund distribution date, six months after the period ends (regulation 94). It is taxed for the tax year in which that date falls: as a dividend, or as interest if more than 60% of the fund is in interest-bearing or similar investments.
An accumulating fund pays nothing out, so all of its reported income is excess. Because the amount has been taxed as income, it is added to the cost of the holding when a capital gain is worked out (regulation 99).
Where the figures are published
A reporting fund must make a report available to each investor within six months of the end of each reporting period. Publishing it on a website that investors and HMRC can reach is one of the ways the regulations allow (regulation 90). If a report comes late, HMRC says taxpayers who have already filed should have used their best estimate and may need to amend their returns.
HMRC publishes a list of funds approved as reporting funds, with ISINs, updated every month; when checked on 11/10/2026 it was last updated on 09/09/2026. Fund pages on Fundology give each fund’s ISIN; Fundology does not show reporting status.
Inside an ISA
There is no UK tax on income or capital gains from investments in an ISA, so neither excess reportable income nor an offshore income gain is taxed on a fund held in one. Capital at risk. Past performance is not a guide to future returns. The value of investments can fall as well as rise.
Tax treatment depends on individual circumstances and tax rules can change.
Questions people ask
Are Irish-domiciled ETFs reporting funds?
Being based in Ireland makes an ETF an offshore fund for UK tax; it is a reporting fund only if HMRC has approved it. HMRC’s monthly list of reporting funds shows which have been approved, with their ISINs.
What is an offshore income gain?
The gain on selling a holding in an offshore fund that is not a reporting fund, or was not one for part of the time it was held. It is treated as income arising at the time of the sale and taxed at income tax rates, not as a capital gain.
Do I pay tax on excess reportable income if I received no cash?
Held outside an ISA, yes. Excess reportable income is treated as a distribution made on the fund distribution date, six months after the end of the fund’s reporting period, and is taxed as a dividend or as interest. It is then added to the cost of the holding for Capital Gains Tax.
Related guides
- What is the difference between accumulation and income units?Accumulation and income units
- How do ETFs, OEICs and investment trusts differ?ETFs, OEICs and investment trusts compared
- What is an ETF and how does it work?ETFs explained
- What is a stocks and shares ISA?Stocks and shares ISA
Terms used in this guide
Browse the funds
Prices, charges in pounds, returns after inflation and holdings, grouped into plain-English categories.
Sources
Checked against GOV.UK on . Official pages only; rules can change after that date.
- HMRC Investment Funds Manual IFM12222: definition of an offshore fund (s355 TIOPA 2010)
- legislation.gov.uk: The Offshore Funds (Tax) Regulations 2009 (SI 2009/3001)
- legislation.gov.uk: SI 2009/3001, regulation 90 (report to participants for a reporting period)
- HMRC: Offshore funds: list of reporting funds
- HMRC Investment Funds Manual IFM12410: reporting funds, introduction
- HMRC Investment Funds Manual IFM13310: participants within the charge to income tax, introduction
- HMRC Investment Funds Manual IFM13412: the charge on an offshore income gain
- HMRC Investment Funds Manual IFM13326: reported income, general
- HMRC Investment Funds Manual IFM13320: participants within the charge to income tax
- HMRC Investment Funds Manual IFM13372: disposals of interests in reporting funds
- GOV.UK: How ISAs work
- GOV.UK: Capital Gains Tax allowances
This is information, not advice. Tax treatment depends on your circumstances and can change. For free, impartial guidance, MoneyHelper (backed by the government) can help; for a personal recommendation, speak to a regulated financial adviser.