I've just taken on a client with an overseas investment portfolio, with the overseas fund managers providing an income summary for the calendar year.
Using this information, the previous accountant reported income for the 2017 calendar year on the client's foreign pages for 2017-18, rather than income arising during the UK tax year.
Although it would make life considerably easier, I cannot find any justification for this approach and have never seen it done before. My expectation was to file actual income for the UK tax year with estimated foreign tax credit, and then file an amended return when the actual figures are available. However, if I do this, I would then need to file an amended return for 2017-18 as well, as income from 1/1/18 to 5/4/18 would be unreported otherwise.
Am I missing something? I would be most grateful to anyone who can point me in the right direction.
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Replies (4)
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I usually find that overseas fund managers are happy to provide reports that cover a UK Taxyear if you ask them for it. And yes you’ll need to amend the previous year.
If the amounts are fairly small and don't vary significantly year on year a practical approach may be to return on a calendar year basis.
Which country is the portfolio based in? Can the manager provide a UK tax report? Is the manager using share pooling for stocks and LIFO for offshore income gains?
Thank you all for taking the time to reply, really appreciated at this time of year. I have enough information to file 2019 and amend 2018, so will follow Tim's advice and get it done properly.