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Background to UK Reporting Fund Status

Your shareholding in the funds below constitutes an interest in an offshore fund from a United Kingdom (“UK”) taxation perspective, with each share Class treated as a separate ‘offshore fund’. The UK Offshore Funds Regulations came into effect on 1 December 2009 and provide that if an investor resident or ordinarily resident in the United Kingdom for taxation purposes holds an interest in an offshore fund and that offshore fund is a ‘non-reporting fund’, any gain accruing to that investor upon the sale or other disposal of that interest will be charged to United Kingdom tax as income rather than a capital gain. Alternatively, where an investor holds an interest in an offshore fund that has been a ‘reporting fund’ for all periods of account for which they hold their interest, any gain accruing upon sale or other disposal of the interest will be subject to tax as a capital gain rather than income.

The share class has been certified by HM Revenue & Customs (“HMRC”) as a reporting fund from the year ended 31 December 2015. Reporting funds have an annual requirement to calculate and report to UK investors and HMRC the reportable income per share and distributions made for each share class. Provided the share Classes comply with this annual reporting requirement, any gain accruing upon sale or other disposal of the interest by each UK shareholder will be subject to tax as a capital gain rather than income.

What does this mean for investors?

Investors will be required to include on their tax return any distributions received during the year and their proportionate share of reportable income in excess of any distributions received. The proportionate share of the reportable income is calculated as follows:

  • Total number of shares held by the investor    x    Reportable income per share
    in each Class at year end (ie 31 December)

The excess reportable income per share must be multiplied by the total number of shares you held in each Class at 31 December 2015 in order to derive the total reportable income to be included in your tax return. The timing of the receipt of income is as follows:

  • UK individual investors
    The deemed distribution date for excess reportable income over any cash distributions received is 6 months after the end of the accounting period. As the accounting year end of the Fund is 31 December, the deemed distribution date is 30 June.

  • UK corporate investors
    As the deemed distribution date is 6 months after the end of the accounting period, this income must be included in your tax return in accordance with the accounting period in which this date falls.

If you have any queries on the above, please contact us at FundTax-Intl@natixis.com

Natixis International Funds (Lux) I

Natixis International Funds (Dublin) I

Natixis Loomis Sayles Senior
Loan Fund