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"Seeking" UK Reporting Status

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torata
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"Seeking" UK Reporting Status

#132528

Postby torata » April 16th, 2018, 1:36 pm

Slightly obscure question:

I noticed that Deutsche Bank MSCI Emerging Markets UCITS ETF (ticker: XMME) is "seeking" UK reporting status.
https://etf.dws.com/en-GB/IE00BTJRMP35-msci-emerging-markets-ucits-etf-1c-/

That's corroborated by the list of reporting funds on the
https://www.gov.uk/government/publications/offshore-funds-list-of-reporting-funds
website, where it's marked as 'tbc'

As it's cheaper than the iShare equivalent, it's more attractive.

How long does it take to get reporting status, and can I go ahead and buy it now (as LTBH) and not be clobbered by having any capital gain counted as income tax due to some quirk of buying it when it didn't have reporting status?

thanks in advance

torata

torata
2 Lemon pips
Posts: 127
Joined: November 5th, 2016, 1:25 am
Has thanked: 30 times
Been thanked: 27 times

Re: "Seeking" UK Reporting Status

#132531

Postby torata » April 16th, 2018, 1:47 pm

I've actually now found the answer to my second question
"can I go ahead and buy it now (as LTBH) and not be clobbered by having any capital gain counted as income tax due to some quirk of buying it when it didn't have reporting status"

https://webforms.ey.com/Publication/vwLUAssets/ey-uk-reporting-fund-status/$FILE/ey-uk-reporting-fund-status.pdf

Special rules apply to existing investors when a fund becomes a
reporting fund for the first time. These rules allow the investor
to benefit from reporting fund status prospectively, even though
they acquired their shares at a time when the fund was not yet
a reporting fund. These investors can make an election in their
tax return to crystallise any unrealised gain (which is taxed
immediately as income). Provided they do so, their investments
in the fund are treated as separate holdings before and after the
change of status, so that their ongoing investment is not tainted
by the prior non-reporting period. No actual redemption and
reinvestment is required.


So that's a pain...

So do I wait, or go for iShares...

torata


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