Investments

Question 1

Offshore Collectives

Answer 1

Set up in countries with little or no local taxation

For tax purposes offshore funds are divided into reporting and non-reporting funds

Reporting (Much the same as UK collectives for tax)
Fund apply to HMRC for reporting status
Reporting status granted where fund reports details of all its income to HMRC
UK investors include their share of fund income on self assessment
No need for fund to distribute income
Fund retains status as long as complies with reporting fund rules
UK investors subject to income tax on their share

Non Reporting Fund
Any fund not obtained reporting status
Income taxed only on disposal
Gain calculated on CGT principles but subject to income tax
CGT allowance cannot be used neither PSA etc

Question 2

Rent a Room- Conditions

Answer 2

Property in joint names relief Ltd to 7.5k
Accommodation must be furnished but not self contained
Property must be in UK
Accommodation must be within a residence
Letting part of home as business/office does not qualify

Question 3

Furnished Holiday Lettings

Answer 3

Available to let for at least 210 days per tax year to the public
Let for 105 of the 210 days (105 average can be taken across 2 or more properties)
= tax advantages

• treated as a trade for loss relief
• income can be use for relevant earnings
• CGT / Holdover / Entrepreneurs relief available

Qualification Rules;
Must be situated in UK / EEA
Must be furnished 
Must be let on a commercial basis
Available for 210 days of the year 
Let at least for 105 days
Continuous for 31+ days but not more than 155 in tax yr
Does not need to be in a holiday resort / holiday makers

Question 4

Time Apportionment Relief

Answer 4

Number of days non-resident in UK

Divide by

Number of days the policy is in force