Interest credits to a "Clean Capital" account

My understanding is that "Clean Capital" is the foreign income that arose before I became a UK resident. And it is not taxable if remitted to the UK. I would like to ask that : 1) Monthly interest will be credited to the account comprising only the "Clean Capital". Will this turn the "Clean Capital" into "Mix Fund", so that it become taxable? 2) Can I transfer the monthly interest to another account in order to maintain the "Clean Capital" status for the income I gained before I become a UK resident? Thanks

Hi,

When clean capital generates interest in an overseas bank account, the interest would be regarded as taxable in the UK and should be declared as 'foreign interest' in your Self Assessment tax return. The transfer of the monthly interest to another overseas bank account would not render it non taxable.

Thank you.

Thanks for your reply. I know that when "clean capital" generates interest in an overseas bank account, the interest would be regarded as taxable in the UK. My question is that what should I do to prevent the "clean capital" becoming "mix fund" since the interest generated by the "clean capital" will be credited to the account comprising only the "clean capital" and change the "clean capital" into "mix fund". Regards,

Hi ccmc,

Have a look at the guidance on cleansing mixed funds at Cleansing mixed funds

Thank you.

I have the same question as the original poster. I reviewed the 'Cleansing mixed funds' page, but it does not appear to apply given the condition that: 'make the transfer between 6 April 2017 and 5 April 2019' What is the guidance to cleansing funds beyond 5 April 2019? I can't seem to find that anywhere. Thank you!

Hi,

Yes, you can set the losses from the disposal of the shares against the gain from the property.  

Please have a look the link below for some examples of how to calculate the gains and losses.  

CG21520 - Individuals: losses: Relief for losses: examples 1 to 5

Please also have a look at the self assessment guidance at:

Capital Gains Summary notes

Thank you.