Skip to main content

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

  • RE: Transfer from mixed fund under arising basis

    Thank you for your response, this is very helpful. However, I would still like to confirm one point, related to the second question in my original post. An example of what I am asking: Let's assume I have a capital gain of £2,000, subject to UK tax under the arising basis in the 2022/23 tax year, in a US-based account which also contains unremitted income and gains from various other prior years in which I was claiming the remittance basis. Let's also assume I have outgoing transfers from that account to non-UK payees in the amount of £200 in the 2022/23 tax year. My question is whether those £200 payments to non-UK payees have any impact on the amount I can bring to the UK. Meaning, can I bring the full £2,000 capital gain subject to UK tax to the UK, or do I need to reduce it by the outgoing payments and only bring in £1,800. Phrased another way, is there any requirement under the arising basis to assume such outgoing payments are comprised first of gains in the year in which they occurred. I hope my question makes sense. Thank you very much for your time and assistance, this forum is really a fantastic service offered by HMRC.
  • Transfer from mixed fund under arising basis

    Hello, I have been in the UK for several years and have always filed under the remittance basis, however I am now moving to the arising basis. I plan to sell some overseas stock shares resulting in a capital gain, which would be subject to UK tax under the arising basis (although the value will be less than the personal allowance.) These shares are held in a mixed fund, containing gains, interest, dividends, etc. from prior tax years during which I was claiming the remittance basis, so did not need to claim the values via self assessment. I plan to transfer the amount of the capital gain to the UK. I have read all the guidance but there are two questions for which I cannot find the answer: 1) Provided the amount I transfer to the UK is equal to or less than my taxable capital gain, do I need to be concerned with the fact that the amount came from a mixed fund? I am aware this would have been an issue had I claimed the remittance basis, but I am unsure if any ordering rules need to be applied under the arising basis. 2) Does the concept of 'overseas transfer' come into play for any non-UK transfers out of that account which occur in the relevant UK tax year? Again, I am aware of how overseas transfers must be taken into account under the remittance basis but I am unsure if this is a concern under the arising basis. Thank you in advance for your help.