InvestEngine ensures that all ETFs available on our platform have UK Reporting Fund Status.
Excess Reportable Income (ERI) is the portion of income accumulating funds receive but do not distribute to investors- essentially, income that’s reinvested back into the fund.
Even though you don’t receive this income as cash, HMRC still considers it taxable.
ERI applies to the accumulating share classes (marked as “Acc” or “Accumulating”) of offshore funds (i.e. most Irish or Luxembourg-domiciled ETFs).
No ERI reporting or tax applies inside ISA or SIPP wrappers.
For more information, refer to HMRC's Offshore Funds Manual. Please consult a tax adviser for guidance on reporting ERI.