Excess reportable income Archives

Excess Reportable Income: 3 Key Questions Answered

What is excess reportable income? Excess reportable income is the profit earned by an offshore fund that isn’t distributed to investors, whether as dividends or interest. Offshore funds can either be ‘reporting’ or ‘non-reporting’. When an investor sells a position in a non-reporting fund, HMRC will assume all income has not been taxed within the […]

Advisors Should Demand Accurate ERI Data To Protect Clients

Originally published on Wealth Briefing, on 1st February 2024. The following article examines the detail of Excess Reportable Income – the money that’s earned during a reporting period that is not distributed. If firms don’t track ERI thoroughly, investors can be punished. Getting data right is therefore essential. Michael Edwards, managing director of Financial Software […]

A Recap of Our Breakfast Briefing: Uncover the Risks of ERI

In partnership with the lang cat, we are excited to present our latest white paper, “Excess Reportable Income: Borrowed Time.” At FSL, we’re committed to solving the challenges facing our customers and their clients. And Excess Reportable Income (ERI) is a topic that keeps coming up. We already know there are significant difficulties around obtaining, […]

FSL commissions the lang cat to uncover the risks of ERI reporting

For all the innovation that goes on in our sector, the exchange of data between parties is often at odds with the standards we’d all expect.

Breaking The ERI Silence: How Offshore Investments Can Increase The Complexity Of Tax Reporting

When navigating tax laws and gathering the right information to ensure compliance, investments in offshore funds may present a challenge for family offices. With offshore investment funds growing in popularity, the first thing to know is that holders are liable to tax on income and gains even when it is not obvious that any income […]

Are You At Risk From Penalties From Offshore Investment Reporting?

First published on Armchair Trader on 2nd May 2023. By Michael Edwards, Managing Director of Financial Software Ltd Having reached the end of the tax year, you’ll be looking at the information you need to complete your 2022/23 tax return. While you might be familiar with the process, it’s worth giving extra thought to what’s […]

Growth in offshore investment has led to increased HMRC scrutiny

According to HMRC, offshore reporting funds have grown by over 20% in the past two years. This increase from 76,777 funds in April 2020 to 93,167 in April 2022 can be partly attributed to tax incentives. Funds that report to HMRC are subject to the lower capital gains tax rates of 10% or 20%, contrasted […]

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