RDRM75320 - Temporary repatriation facility: Mixed funds: Transfers to a TRF capital account: Nominating an account
Overview
Section 809RZB Income Tax Act 2007
To enable individuals to separate out their TRF capital where they have made a partial designation within a mixed fund, they are able to transfer their TRF capital out of the mixed fund to a special overseas account, known as a TRF capital account. This is so an individual can keep track of where their TRF capital is for remitting amounts to the UK, avoiding TRF capital being used up offshore instead, which may happen if it remains in the mixed fund.
Certain conditions must be met to ensure that the nomination of the TRF capital account is valid.
Conditions
The conditions, which must all be met, are:
- the individual must notify the Commissioners in writing with the details of the account 바카라 사이트� this can be done on in the White Space Notes section of the Self Assessment tax return 바카라 사이트� and must include the following information:
- that a 바카라 사이트淭RF capital account바카라 사이트� is being nominated
- qualifying date
- account number
- financial institution (including the country) that holds the account
- balance on the account immediately before the first transfer of TRF capital into the account
- immediately before, or on, the qualifying date, the account cannot have a credit balance of more than 拢10
- the account must be an ordinary bank account held by and for the benefit of the individual, though it can be held jointly with others
- the notification must be made by 31 January after the end of the tax year in which the account first receives TRF capital 바카라 사이트� if it is not, the account will never have been treated as a TRF capital account
An individual is not limited to having one TRF capital account.
The 바카라 사이트榪ualifying date바카라 사이트� for the account is the first date on which more than 拢10 of TRF capital is paid into the account.
For these purposes an 바카라 사이트榦rdinary bank account바카라 사이트� is one that is a cash account in a bank, which can be a current or a savings account.
The account nominated as a TRF capital account must not contain any other income and capital, with the exception of the allowable amount up to 拢10. This allowable amount is to enable a new account to be opened where it cannot be opened with a nil balance. When the account becomes a TRF capital account, the allowable amount within it is treated as TRF capital.
An individual is not required to open a new account; it is possible to use an existing overseas account, providing the balance is less than 拢10 when the first amount of TRF capital is transferred into the account. However, an individual may prefer to open a new account so that there is no risk of other amounts being paid into the account that relate to historic activity, such as a refund or returned transfer, that would breach the TRF deposit rule (see RDRM75340).
If any of the conditions are not met, the account will not be a TRF capital account, and any amounts paid into it will be ordinary offshore transfers in accordance with section 809R ITA 2007 바카라 사이트� see RDRM35410.
If the qualifying date falls in a tax year in which there is a breach of the TRF deposit rule which is not remedied or cannot be remedied, the account will not be a TRF capital account.