What the status is
A reporting fund undertakes to report its income to UK investors annually, in a form HMRC prescribes, whether or not that income is paid out.
In return, UK investors are taxed on disposal under the capital gains rules rather than as income.
What you take on when a fund has it
Reporting status is better on exit, but it is not free. You must declare the fund's reported income each year, including excess reported income the fund did not distribute.
In an accumulating fund that means tax on money you have not received.
What it does not cover
Status attaches to a share class from a stated date. It does not reach back over a period before that date, and it can be withdrawn.
Where to check
HMRC publishes the approved list monthly. Our India-exposed extract is on the reporting funds list page.