Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 19 Jul 2023 17:34:05 GMT by
I am using the remittance basis. I sold a property in Japan that I had bought for GBP 200,000 ten years ago. This year, I sold the property for GBP 280,000, which consists of a cost of GBP 200,000 and a capital gain profit of GBP 80,000. Due to daily transfer limits imposed by online banking, with a maximum transfer amount of GBP 100,000 per day, I divided the total amount of GBP 280,000 into three transfers: GBP 100,000, GBP 100,000, and GBP 80,000. These transfers were made over three days to a bank account in Singapore. One day one transfer. Both my bank accounts in Japan and Singapore do not contain any other funds, and no gain was generated before or after the transfers. The total amount of funds remained GBP 280,000. By doing this, does the GBP 280,000 become a Mixed Fund? In this case, will I be able to separate the cost and profits in the future for tax purposes?
Posted Thu, 27 Jul 2023 05:39:27 GMT by HMRC Admin 25
Hi bmc,
For Capital Gains Tax purposes, the calculation of any gain is calculated in pounds sterling only, using the official exchange rate in place at the time of acquisition and the time of disposal.
Incidental costs of acquisition and disposal can be deducted from the disposal value.
CG15250 - Expenditure: incidental costs of acquisition and disposal.
The official exchange rates can be found here:
Exchange rates from HMRC in CSV and XML format 
Archived rates here:
Exchange rates
In the event that an individual remits funds from a foreign bank account to the UK, they will need to calculate the amount of income and gains the account has had since: the day they moved to the UK and the day they remitted the funds to the UK.
This will determine the amount of income and gains that HMRC will tax.
Thank you. 
Posted Sun, 30 Jul 2023 19:29:08 GMT by
Dear HMRC Admin 25, Thank you for your answer. I apologize for my question was not clear enough. I read the information that you gave me but no appropriate answer was found there. I sold the property for GBP 280,000, which consists of the price when I purchased the property of GBP 200,000, and a capital gain profit of GBP 80,000 when I sold it. Purchased Price 200,000 + Profit 80,000 = Selling Price 280,000 The point is: I divided the total amount of GBP 280,000 into three transfers: GBP 100,000, GBP 100,000, and GBP 80,000, from my bank account in Japan to my bank account in Singapore. 100,000 + 100,000 + 80,000 = GBP 280,000 Both my bank accounts in Japan and Singapore DO NOT contain any other funds, and NO GAIN was generated before or after the transfers. The total amount of funds remained at GBP 280,000 overseas. By doing this, does the GBP 280,000 in my account in Singapore become a MIXED FUND?
Posted Thu, 03 Aug 2023 15:11:29 GMT by HMRC Admin 10 Response
Hi
A mixed fund is a fund of money or other property which contains more than one type of income or capital (including ‘foreign chargeable gains’) and/or income or capital from more than one tax year.
A typical example is a bank account into which different types of income, such as bank interest, dividends and earnings, or capital have been paid.
As all the income in the account is from the sale of the property it is not a mixed fund.

You must be signed in to post in this forum.