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Posted Wed, 30 Aug 2023 12:28:48 GMT by
Hello, I am non-domiciled UK tax resident and I use remittance basis of taxation. For financing life in the UK I use clean capital. I bought non-UK corporate bonds on secondary market via a broker. The bonds were purchased at a price lower than their face value (e.g. purchased at 95, while face value is 100). This purchase was financed from my clean capital. Now the bonds are matured and their face value will be redeemed to me. Please advise if the redemption of bonds' purchase price (95 in an example above) is credited to my clean capital account will it still be preserved as clean capital or it will be tainted into mixed funds?
Posted Mon, 04 Sep 2023 15:42:18 GMT by HMRC Admin 32 Response
Hi,

This would now be a mixed fund.

Thank you.

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