There are three methods for working out taxation for an interest in a FIF and two methods for an interest in a FLP, depending on your access to certain information on the FIF or FLP.
Interest in a FIF
Read Chapter 4: Methods of FIF taxation
- Most taxpayers liable to tax under the FIF measures will use the market value method.
- Use the deemed rate of return method if you are unable to establish a market value for your FIF interest and you have not elected to use the calculation method.
- Use the calculation method if you have access to the financial accounts of the FIF and you are able to determine the FIF's calculated profit or calculated loss.
Interest in a FLP
Read Chapter 5: Foreign life assurance policies
If you have invested in a FLP, you can use:
- the deemed rate of return method, or
- the cash surrender method.