Skip to main content

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

Posted Tue, 14 Mar 2023 06:01:12 GMT by forumuser32023
When a person has a mixed fund account outside UK with clean capital (savings prior to arrival in the UK) and interest (accumulating on monthly basis even until now) - 1. If the person plans to transfer funds from this foreign account to the UK, only the savings interest is taxable and needs to be declared? Can the capital be cleansed after declaring the savings interest? 2. Should the person transfer the fund before or after declaring the savings interest? Or it does not matter when to transfer the fund as long as the person declares the savings interest in the corresponding tax year? 3. Is an account set up in Crown Dependencies regarded as foreign account?
Posted Fri, 17 Mar 2023 15:34:42 GMT by HMRC Admin 5

You can find guidance here:

Remittance basis 2022 (HS264)

that gives details of mixed funds.

Cleansing of mixed funds is no longer available. Any income received outside of the UK is classed as foreign income.

Thank you.
Posted Sun, 19 Mar 2023 12:42:14 GMT by forumuser32023
Thank you for the reply. Can I clarify my understanding in case of arising basis? For an overseas account comprising savings (salaries gained before becoming a UK resident) and interests, when money is transferred from the account to a UK bank account, does this amount has income tax implication? Or the person only needs to declare all saving interests from all accounts(overseas and UK) generated in the tax year?
Posted Thu, 23 Mar 2023 15:23:17 GMT by HMRC Admin 19

Whether you are taxable on the arising basis or the remittance basis in 2021 to 2022, you are taxable on any remittances of income or gains that you make in 2021 to 2022 that arose or accrued in an earlier year in which you were taxed on the remittance basis.

Thank you.

You must be signed in to post in this forum.