A Custodial Institution is required to report the total gross proceeds from the sale or redemption of Financial Assets held in a Custodial Account during the reporting period. This is without regard to whether or not the Account Holder would be subject to tax in the UK on the sale or redemption of the Financial Asset.
The total gross proceeds from the sale or redemption of a Financial Asset is the total amount credited to the account of the person entitled to the payment without regard to any sums netted off against the payment to satisfy outstanding liabilities. For example, a loan used to fund the acquisition of the asset may be repaid from the proceeds of the sale. This must not be deducted from the amount reportable.
Commissions and fees paid on the sale or redemption of the asset may be taken account of in arriving at the gross proceeds of the sale.
Where the Financial Asset that is sold or redeemed is an interest bearing debt obligation the gross proceeds should include any interest that has accrued between interest payment dates.