Share this content
0
255

Non Doms - cleansing mixed funds - help please

Mixed fund of uncertain origin contains tax-paid gain - can client remit using cleansing legislation

My head is spinning trying to get to grips with the new legislation on cleansing mixed funds.  I think the issue is fairly straightforward.  My non-dom client has been using the remittance basis in most years because foreign income and gains were below de minimis.  He has a Greek bank account opened in late 1980s containing mixed income, gains and clean capital and we have no idea about the proportions of these in the account.  In 2009, he sold a Greek property, paid the proceeds (over £100K) into the Greek account and paid UK tax on the gain (cheaper than remittance basis charge). A year later he transferred £40K from the Greek account to a new Jersey account.  In his mind this was part of the proceeds of the house sale but the reality is, I believe, that it was a transfer from a mixed fund. 

If he now transfers the £40K in Jersey to a separate account can he then nominate that as being the capital from the sale of the house and, as UK tax has been paid, then bring it into the UK?  [Alternatively, could he nominate £40K from his Greek account (he would need to send back the £40K from the Jersey account) and bring that back into UK tax-free.]

Replies

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.

Share this content