The deadline for qualifying individuals to take advantage of the mixed funds cleansing legislation is fast approaching. UK Resident Non-Domiciles and UK Deemed Domiciled individuals have been given a golden ticket to cleanse their offshore mixed funds accounts before the 5 April 2019.
The legislation enables existing offshore mixed funds to be analysed, categorised and then split into 3 separate accounts, one for Income, one for Chargeable Gains and one for Clean Capital.
By cleansing accounts containing mixed funds, it will enable the qualifying individual to have greater control over what is remitted, and it will allow them to make more UK tax efficient choices for their offshore funds in the future. This will be a marked improvement on the current cumbersome arrangements.
In order for the cleansing to take place, only cash will qualify as a transferable asset when it comes to the final cleansing transfer. Therefore, all none cash assets, such as shares or reporting funds, must be sold before the final transfer.
If you or your clients have made a remittance base claim between and including 2008/09 – 2016/17, then you can take advantage of the cleansing process.
For more information please email Andrew Robinson at andrew.robinson@sptaxeurope.co.uk or call us on 01704 891676.
