Long-Term Residents – Mixed Fund Cleansing Print

This measure will allow any non-domicile who has clean capital in a bank account which has become mixed with income and/or gains to analyse the account to establish its component parts, and then to segregate the income and gains from the clean capital, so that the capital may be remitted to the UK without triggering a tax charge.

Any non-domicile who has claimed the remittance basis at some time may carry out this exercise, and there is no requirement for him to have paid the Remittance Basis Charge.

Re-categorisation will only be available during the 2-year period from 6 April 2017 to 5 April 2019.

Re-categorisation is a complex calculation, and for accounts held prior to April 2008 there were different identification rules regarding transfers out of an account. It will be necessary to have all the relevant bank statements and to be able to identify the nature of all credits to the account as well as the nature and destination (UK or overseas) of all withdrawals from the account. Unfortunately, HMRC has turned down a request for a simplified procedure to identify the component parts within an account.

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