Overview
Technical resources
Tax planning opportunities for 2025/26 Replacement of the lifetime allowance Retirement Income Pension Forum The Platform Clinic Pension, retirement and tax planning Pensions tax relief and annual allowances The beneficiaries flexi-access drawdown conundrum Retirement and pensions training Personal tax and trust planning training
Technical hub Retirement income Regulation, due diligence and compliance Training support
Technical matters
Technical matters
Tax planning opportunities for 2025/26 Replacement of the lifetime allowance Retirement Income Pension Forum The Platform Clinic Pension, retirement and tax planning Pensions tax relief and annual allowances The beneficiaries flexi-access drawdown conundrum Retirement and pensions training Personal tax and trust planning training
More support
Paraplanner technical hub
Paraplanner technical hub
Technical hub Retirement income Regulation, due diligence and compliance Training support
Capital gains reporting
This reporting allows you to calculate investors' capital gains positions for investments held on the platform. It's the easy way of managing and reporting capital gains positions on behalf of your clients.
Features
- Unrealised and tax-year specific realised gains reports are available on screen or can be downloaded as a PDF or Excel spreadsheet
- Excess Reportable Income (ERI) is calculated in the report
- Entry of acquisition costs for capital gains purposes for re-registered and stock transferred investments
- The consolidated capital gains report allows you to combine both reports into one document
- There’s the ability to deliver bulk and/or single client reports
- Reports account for historic deals with daily updates of new transactions
- Calculations are made using prices from the end of the previous business day.
To support you with our enhanced acquisition cost functionality, we have a factsheet that you can find within ' Help and support' once you have logged in. Here you will also find our comprehensive user guide.
Calculations take into account acquisition date and cost, disposal proceeds, current value, equalisation and notional distributions and corporate actions. Computations follow the general CGT rules of identification and matching.
This content does not constitute financial advice, tax advice or legal advice, or provide any recommendations.
Frequently asked questions
- Most funds that reside outside of the UK are designated ‘offshore’. For example, Irish domiciled funds and ETFs count as offshore.
- You can also tell the Funds country of origin by the ISIN number. If the code doesn’t start with ‘GB’ then it’s most likely an offshore fund.
- Excess Reportable Income (ERI)
- ERI is the profit from a fund that has not been distributed to investors, either as dividends or interest. ERI is deemed as a distribution of income for UK tax purposes and is treated as if the investor had received on the fund distribution date.
- Excess Reportable Income (ERI) relates to offshore funds that have obtained reporting fund status with HMRC in the UK.
- HMRC maintains an approved list of offshore reporting funds.
- Fund and ETF providers publish excess reportable income in annual documents that can be used to calculate tax liability.
- This will typically include the following information:
- Excess reportable income amount per unit / share
- Fund distribution date
- Start/End Day of the reporting / accounting period
- Equalisation amount / adjustment (if any)
- Currency.
- Excess reportable income is payable even if fund shares were purchased on the final day of the reporting period.
- ERI has a reporting start and end period. The excess reportable income counts as being received on the fund distribution date which is 6 months after the reporting end period. The distribution date also determines the tax year that any tax liability falls due.
- The fund distribution date may be different from other dividend distribution dates. This way, different tax years can apply to excess reportable income versus income paid directly as cash.
- For income funds, tax will be owed on excess reportable income plus any cash distributions that are paid directly to the customer.
- The ERI is added to the base cost of the fund, which in turn reduces the capital gains tax bill when shares are sold.
- Excess reportable income is earned for any shares held on the last day of the fund’s reporting period.
- Calculation is: Net proceeds – (Base cost + ERI) = Capital gain
- Here’s an example of how to apply it to disposals:
- Base cost (aka acquisition cost) of fund £10,000
- ERI calculated as £500
- Base cost plus ERI = £10,500
- Net proceeds: £20,000
- Less base cost & ERI of £10,500
- Capital gain = £9,500
The existing Capital Gains Transaction report (accessible to advisers through the FAS website) has been enhanced to include Excess Reportable Income (ERI) information.
ERI data is needed by investors so that they can add this information to their annual Tax return for onward transmission to HMRC. This information is not available in the CGT realised and unrealised gain reports.
In addition to the existing 11 data points contained within the Capital Gains Transactions report, the report has been enhanced to include a further 12 data points. Please see below for a full list of additional data points and definitions.
These changes are live to advisers only, with effect from 21 April
ERI Reporting Start Date | The reporting period start date marks the beginning of the reporting period for which the Excess Reportable Income (ERI) is calculated. |
ERI Reporting End Date | The reporting end date is the final date of the reporting period for which the offshore fund calculates its (ERI). This is the ex-date for the accumulation. |
Units Held at The Reporting End Date | This relates to the total number of fund units that an investor owns in the offshore funds as of the ERI reporting period end date. |
Units Acquired in Reporting Period | This relates to the total number of fund units purchased by the investor within the specified ERI reporting period. |
ERI Income Rate | This is the amount of extra income earned by each unit in an offshore reporting fund during a specific period that wasn’t paid out to investors. This is expressed as a value per unit and helps you figure out how much taxable income you need to report based on the number of units the investor owns at the end of the reporting period. |
Total ERI Income at The End of The Period | This is calculated by multiplying the excess reportable income rate by the number of shares held by the investor on the last day of the reporting period. |
Equalisation Rate | The equalisation rate is an adjustment that accounts for when the investor bought the units in the fund during the reporting period. It ensures that the investor only pays tax on the income earned while the investor owned the units, not on income earned before investing. |
ERI Equalisation Amount | This is the total adjustment applied to the investor’s investment based on the number of units bought during the reporting period. It reduces the amount of ERI that needs reporting for tax purposes. |
Fund Distribution Date | This refers to the date on which the ERI is deemed to be distributed for UK tax purposes, typically 6 months after the end of the reporting period. |
HMRC Reportable for Next Period | This indicates whether for its next Financial Year the fund will retain UK reporting status. If it chooses to surrender the status then the investor’s tax position changes with effect from the start of the next reporting period and capital gains treatment is lost from that date. |
Tax Year | This is the tax year in which the ERI is reportable. |
ERI Income Type | This will show either ‘dividend’ or ‘interest’. |
Other changes are being made
- The ‘Taxing Calculations Capital Gains Tax’ document has been updated to reflect these changes.
- The FAS website has been updated to reflect that ERI information is now available for offshore funds.
Coverage
- A list of offshore ISINs for which ERI data is not available can be found here. This list will be updated on a monthly basis.
- Fidelity has Capital Gains reporting which can help advisers to quickly identify both unrealised and realised gains or losses within client portfolios on the platform.
- The report uses data from all the historic transactions conducted on the platform, and calculations are produced both at an account level and for individual fund holdings.
- Advisers can see a client’s overall Capital Gains position and view which investments the gains and losses arise from.
- Transactions used to perform the calculations can also be viewed within the Capital Gains reports.
- Fidelity has partnered with a 3rd party vendor to source ERI data from fund providers for all eligible funds.
- Where offshore funds are held and where FIL has access to information regarding the ERI for the fund and the equalisation, this will be included within the calculation of any gain or loss.
From 14 March 2025 Excess Reportable Income for offshore funds will be incorporated into the calculation of both realised and unrealised gains and losses.
- The existing Capital Gains Transaction report (accessible to advisers through the FAS website) will be enhanced to include ERI information including; ERI reporting period, the ERI distribution date, the ERI income rate, equalisation rate and tax year.
- Existing reports and web pages will be updated to reflect these changes.
- These changes will be live 21 April 2025.
- Our third-party vendor has assured us that periodic checks are completed against the HMRC register ensuring all offshore reportable funds are included within our CGT reporting.
- Where the fund manager has reported a ‘nil rate’ for ERI purposes, this will not appear within our reporting.
- FIL cannot guarantee that it will always have access to this information, and where it is not available, the Capital Gains reports may over or understate a gain or loss on a fund in this category.
- These changes will only be visible to advisers. Therefore, any client accessing information through EI (including advised clients) will not see the same information.