Temporary Repatriation Facility (TRF): Is 12% Tax on Offshore Funds Right for You

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The Audio Summary of the Most Important Points:

TRF Audio Summary

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Understanding the TRF and Its 12% Tax Rate

So, you’ve got some money parked offshore, and you’re wondering if the UK’s Temporary Repatriation Facility (TRF) with its shiny 12% tax rate is worth a look? Let’s cut through the jargon and get to the heart of it. The TRF, introduced as part of the seismic tax reforms kicking in from 6 April 2025, is a limited-time offer for UK residents with untaxed foreign income and gains (FIG) to bring those funds into the UK at a reduced tax rate. But is it the right move for you? In this part, we’ll break down what the TRF is, who qualifies, and how its 12% rate stacks up against standard UK taxes. Spoiler: it’s a potential game-changer, but it’s not for everyone.

What Exactly Is the Temporary Repatriation Facility?

Picture this: you’re a non-dom who’s been stashing income or gains in an offshore account, safe from UK tax because you never brought it to Blighty. The old remittance basis let you do that, but from 6 April 2025, that system’s gone, replaced by the residence-based Foreign Income and Gains (FIG) regime. The TRF is the government’s way of saying, “Hey, bring that money to the UK, and we’ll tax it at a bargain rate—12% for 2025/26 and 2026/27, then 15% for 2027/28.” It’s available until 5 April 2028, and you don’t even have to remit the funds immediately—just designate them on your tax return. The catch? You need to have claimed the remittance basis in at least one tax year between 2017/18 and 2024/25, and you can’t have been deemed UK-domiciled before 2025/26 (i.e., resident for 15 out of 20 years).

Why Did the Government Introduce the TRF?

Now, let’s think like the Chancellor for a moment. The UK wants to boost its economy by encouraging wealthy non-doms to spend or invest their offshore wealth here. The TRF’s low tax rates—12% for two years, then 15%—are a carrot to lure that cash into the UK, generating tax revenue that might otherwise stay offshore forever. HMRC estimates this could bring in £15 billion, so it’s a big deal. Plus, with the non-dom regime scrapped, the government’s nudging you to tidy up your offshore affairs before the full tax rates (up to 45% for income or 20% for capital gains) hit any future remittances. It’s a bit like a tax amnesty, but with strings attached.

Who Qualifies for the TRF?

Be careful! Not every UK resident with offshore funds can jump on the TRF bandwagon. Here’s who’s eligible:

• UK Residents: You must be UK tax resident in the year you designate funds (2025/26 to 2027/28).

• Former Remittance Basis Users: You need to have claimed the remittance basis in at least one tax year from 2017/18 to 2024/25. If you were automatically entitled to it (e.g., low income), you might need to amend past returns to qualify.

• Non-Domiciled Status: You can’t have been UK-domiciled or deemed domiciled (15+ years in the UK) before 2025/26.

• Pre-6 April 2025 FIG: Only foreign income or gains earned before 6 April 2025 qualify, including those in offshore trusts or mixed funds.

If you’re a non-resident with old FIG or a new UK resident under the FIG regime (exempt for four years after 10+ years abroad), the TRF might not apply unless you resume UK residence. Always check with a tax adviser to confirm eligibility.

Is the 12% Tax on Offshore Funds Under the TRF Right for You?

Let’s not beat around the bush. If you’re a UK resident with undisclosed or previously unremitted overseas income or capital gains sitting offshore, then yes — this could be your one-off golden window to bring those funds back at a heavily discounted tax rate. We're talking 12% flat tax, compared to the usual 40% to 45% income tax, or even 60% effective rates in some non-dom remittance cases.

But before you jump in, this scheme is narrow in scope, strict in documentation, and non-repeatable. It’s only around until 2027–28 and comes with non-trivial rules. So, let’s walk through it — thoroughly.

Here’s a concise table summarizing the pros and cons of using the Temporary Repatriation Facility (TRF) for UK taxpayers and business owners, based on the latest information as of June 2025.

Pros	Cons
Low Tax Rate: Taxes pre-2025 foreign income and gains (FIG) at 12% (2025/26–2026/27) or 15% (2027/28), compared to up to 45% income tax or 20% CGT.	No Foreign Tax Credit: Taxes paid abroad on FIG can’t be offset against the TRF’s 12% rate, potentially increasing overall costs.
Simplified Mixed Funds: Eases tracing rules for mixed accounts, reducing the need for complex accounting.	Limited Eligibility: Only available to UK residents who claimed the remittance basis (2017/18–2024/25) and aren’t deemed domiciled before 2025/26.
Trust Benefits: Capital payments from offshore trusts with pre-2025 FIG qualify, saving up to 33% compared to standard rates.	IHT Risk: Remitted funds may face UK inheritance tax if you become deemed domiciled (10+ years of residence from 2025).
Pre-2008 Gains Exemption: Trust capital gains before 6 April 2008 can be designated at 0% tax.	Deadline Pressure: TRF ends 5 April 2028, and waiting until 2027/28 raises the tax rate to 15%.
Flexible Remittance: Designate funds without immediate remittance, allowing strategic timing for bringing money to the UK.	Liquidity Issues: Tax must be paid on designated funds, even if tied up in illiquid assets like property, requiring cash reserves.

Temporary Repatriation Facility - Pros & Cons

What If You Do Nothing?

Be careful! If you ignore the TRF and HMRC later finds your offshore funds, you may face:

• Full income tax (up to 45%)

• Interest backdated up to 20 years

• Penalties of up to 200% of the tax owed under the Failure to Correct regime

• Potential naming-and-shaming if liabilities exceed £25,000

Doing nothing might feel safe in the short term, but under the 2017 Requirement to Correct regime and 2025 economic crime reforms, doing nothing is increasingly risky.

How Does the 12% Tax Rate Compare to Standard UK Taxes?

None of us is a tax expert, but comparing the TRF’s rates to standard UK taxes is crucial to see if it’s a good deal. For 2025/26, UK income tax bands are:

• Personal Allowance: £12,570 (tax-free, but tapered for incomes over £100,000).

• Basic Rate: 20% on income from £12,571 to £50,270.

• Higher Rate: 40% on income from £50,271 to £125,140.

• Additional Rate: 45% on income above £125,140.

Capital gains tax (CGT) rates are:

• Basic Rate: 10% (or 18% for property).

• Higher Rate: 20% (or 28% for property).

• Annual Exempt Amount: £3,000.

The TRF’s 12% flat rate (rising to 15% in 2027/28) is a steal compared to the 45% income tax or even 20% CGT for higher-rate taxpayers. But if your FIG is mostly capital gains and you’re a basic-rate taxpayer, the 10% CGT rate might be cheaper. Plus, there’s no credit for foreign taxes paid under the TRF, which could sting if you’ve already paid tax abroad. Here’s a quick comparison:

Scenario	TRF Tax (2025/26)	Standard Tax (if remitted)	Savings
£100,000 income (higher-rate taxpayer)	£12,000 (12%)	£40,000 (40%)	£28,000
£100,000 capital gain (basic-rate taxpayer)	£12,000 (12%)	£10,000 (10%)	-£2,000
£50,000 trust distribution (additional-rate taxpayer)	£6,000 (12%)	£22,500 (45%)	£16,500

Source: HMRC tax rates for 2025/26, verified at www.gov.uk/income-tax-rates

This table shows the TRF can save you a bundle, especially for high earners or trust beneficiaries. But if your FIG is small or mostly low-taxed gains, you might want to crunch the numbers carefully.

TRF vs. Normal UK Tax Treatment (2025-26)

What Types of Funds Can You Designate?

Now, it shouldn’t be a surprise that the TRF covers a wide range of offshore FIG, but there are nuances. Eligible funds include:

• Investment Income: Think dividends or interest from offshore accounts.

• Capital Gains: Profits from selling foreign assets (e.g., stocks, property).

• Trust Distributions: Capital payments from offshore trusts matching pre-6 April 2025 FIG.

• Mixed Funds: Accounts with a mix of income, gains, and clean capital, where tracing is simplified under TRF rules.

However, income distributions from trusts after 5 April 2025 don’t qualify, even if they stem from pre-2025 income. Also, if your FIG is tied up in non-liquid assets (e.g., art or property), you can still designate it without selling, but you’ll need to pay the tax from other funds.

Table: TRF vs. Normal UK Tax Treatment on Offshore Funds (as of 2025–26)

Scenario	Normal Tax Treatment	TRF Treatment (2025–2028)
Offshore income remitted	20–45% Income Tax	12% flat rate
Capital gain on offshore funds	20% CGT (plus surcharge for non-doms)	12% flat rate
Offshore trust distributions	45% matched-to-income basis	12% if matched with pre-2025 gains
UK resident non-dom using remittance basis	Tax only on UK income or remitted	Can designate unremitted income for TRF

Source: Finance Act 2025, Schedule 10; ITA 2007; HMRC Manual RDRM72600

Why Might the TRF Be a Good Fit?

Consider this: if you’re sitting on a pile of offshore cash you want to spend in the UK—say, to buy a London flat or invest in a business—the TRF could save you thousands. For example, Priya, a non-dom entrepreneur in Manchester, has £500,000 in offshore dividends from her tech investments. Remitting them in 2025/26 under the TRF would cost her £60,000 in tax (12%) versus £225,000 (45%) under standard rates. That’s a £165,000 saving, enough to fund a new startup or a deposit on a property. The TRF also simplifies mixed fund rules, so you don’t need to spend weeks untangling old bank statements.

The Temporary Repatriation Facility (TRF) is not directly replacing a specific scheme, but it effectively revives and modernises earlier UK initiatives like the 2008 Liechtenstein Disclosure Facility (LDF) and 2015 Worldwide Disclosure Facility (WDF).

Those earlier schemes aimed to encourage UK taxpayers to disclose and regularise offshore assets voluntarily, often at reduced penalties or fixed tax rates.

The TRF updates that approach by offering a targeted, time-limited 12% tax rate specifically for offshore trust distributions and pre-2025 untaxed income/gains, rather than a broad disclosure regime. So, it’s not a replacement per se — it’s a more focused incentive for repatriating offshore funds under controlled, transparent terms.

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Practical Considerations and Strategic Planning for the TRF

Now, you’re probably wondering how to make the Temporary Repatriation Facility (TRF) work for you—or if it’s even worth the hassle. The 12% tax rate sounds tempting, but there’s more to it than just signing a form and wiring money to the UK. In this part, we’ll dive into the nitty-gritty: who should jump on the TRF, how it applies to complex scenarios like trusts or mixed funds, and potential pitfalls that could trip you up. Plus, we’ll walk through a step-by-step guide to designating funds and share a real-world example to bring it all to life. Let’s get practical and help you decide if the TRF is your golden ticket.

Who Should Consider Using the TRF?

So, the question is: is the TRF a no-brainer for you? If you’re a non-dom who’s claimed the remittance basis between 2017/18 and 2024/25 and you’ve got untaxed foreign income or gains (FIG) sitting offshore, the TRF is worth a serious look. It’s especially attractive if you’re:

• Planning to Spend in the UK: Want to buy property, invest in a business, or fund your lifestyle? The TRF lets you bring funds onshore at 12% tax (2025/26–2026/27) instead of up to 45%.

• Holding High-Value FIG: If your offshore income or trust distributions would face higher or additional rate tax (40% or 45%), the TRF’s flat rate is a bargain.

• Managing Trusts: Beneficiaries of offshore trusts with pre-6 April 2025 FIG can use the TRF to access capital payments at a lower rate.

• Simplifying Mixed Funds: If your offshore accounts are a tangle of income, gains, and capital, the TRF’s simplified tracing rules can save you a headache.

But hold on—if you’re a basic-rate taxpayer with mostly capital gains (taxed at 10%), the TRF might cost you more. Similarly, if your FIG is locked in illiquid assets (e.g., a villa in Spain) and you don’t have cash to pay the tax, you’ll need to plan carefully. Always consult a tax adviser to weigh your options.

How Does the TRF Work for Trusts?

Be careful! Trusts are a minefield when it comes to the TRF, but they’re also where the biggest savings can lie. If you’re a beneficiary of an offshore trust with pre-6 April 2025 income or gains, you can designate capital payments under the TRF at 12% tax, even if you don’t remit the funds right away. Here’s how it works:

• Eligible Payments: Only capital payments (not income distributions) from pre-2025 FIG qualify. For example, if your trust earned £200,000 in dividends before 2025, a capital distribution of that amount could be taxed at 12% instead of 45%.

• Pre-2008 Gains: If your trust has capital gains from before 6 April 2008, these are exempt from tax under the old rules. The TRF lets you designate these as “clean capital” at 0% tax, which is a rare win.

• Settlor Issues: If you’re the settlor and benefit from the trust, anti-avoidance rules might attribute trust income to you, complicating TRF claims. Check with an adviser to avoid surprises.

For example, take Ewan, a non-dom in Edinburgh who’s a beneficiary of a Jersey trust. The trust holds £1 million in pre-2025 dividends. If Ewan receives a £500,000 capital payment in 2025/26, he’d pay £60,000 (12%) under the TRF versus £225,000 (45%) otherwise. That’s a £165,000 saving, but he needs to ensure the payment is structured correctly to qualify.

What About Mixed Funds?

Now, consider this: if your offshore account is a jumble of income, gains, and clean capital (a “mixed fund”), the TRF could be a lifesaver. Under normal rules, remitting from mixed funds is a nightmare—you must trace every pound to determine its tax treatment, often needing forensic accounting. The TRF simplifies this by letting you designate specific FIG at 12% without remitting immediately. For instance, if your account has £100,000 in dividends, £50,000 in gains, and £50,000 in clean capital, you can nominate the dividends for TRF treatment, leaving the rest untouched. But beware: once you designate funds, you can’t change your mind, and remittances must follow strict ordering rules.

Step-by-Step Guide to Designating Funds Under the TRF

Here’s a practical guide to using the TRF, based on HMRC’s guidance (verified at www.gov.uk/guidance/foreign-income-and-gains-regime-from-6-april-2025):

1. Confirm Eligibility: Check if you claimed the remittance basis (2017/18–2024/25) and are UK resident in 2025/26. Ensure your FIG is pre-6 April 2025.

2. Identify Qualifying Funds: List your offshore income, gains, or trust distributions. For mixed funds, estimate the proportion of each type.

3. Calculate Tax Savings: Compare the TRF’s 12% rate to standard rates (e.g., 45% for income, 20% for gains). Use the table from Part 1 for reference.

4. Designate Funds: On your Self Assessment tax return (due 31 January post-tax year), nominate specific FIG for TRF treatment. You don’t need to remit immediately.

5. Pay the Tax: HMRC will assess the 12% tax (or 15% in 2027/28) on designated funds. Ensure you have cash to cover it, as no foreign tax credits apply.

6. Plan Remittance: If you remit funds later, follow HMRC’s ordering rules to match remittances to designated FIG.

7. Keep Records: Document all designations and remittances for at least six years, as HMRC may audit your TRF claims.

8. Consult an Adviser: For trusts or complex mixed funds, get professional advice to avoid errors.

Steps to Utilise TRF

What Are the Risks and Pitfalls?

Now, don’t get too excited—the TRF isn’t all sunshine and rainbows. Here are some traps to watch for:

• No Foreign Tax Credit: If you paid tax abroad on your FIG, you can’t offset it against the TRF’s 12%. This could make the TRF less attractive.

• Deadline Pressure: The TRF ends on 5 April 2028, and the rate rises to 15% in 2027/28. Waiting too long could cost you.

• Trust Complications: Income distributions from trusts don’t qualify, and settlor-benefit rules could trigger unexpected taxes.

• IHT Implications: From 6 April 2025, non-doms lose inheritance tax (IHT) protections on offshore trusts after 10 years of UK residence. Remitting funds via the TRF might expose them to IHT later—check with an adviser.

• Exchange Rate Risks: If your FIG is in a foreign currency, exchange rate fluctuations could affect the sterling value you remit.

Case Study: A Non-Dom’s TRF Decision

Let’s meet Zara, a London-based non-dom who claimed the remittance basis in 2020/21. She has £800,000 in an offshore account: £400,000 in pre-2025 dividends, £200,000 in capital gains, and £200,000 in clean capital. Zara wants to buy a £600,000 flat in 2026. Without the TRF, remitting £600,000 (all dividends) would cost £270,000 in tax (45%). Using the TRF, she designates £600,000 of dividends in 2025/26, paying £72,000 (12%). She saves £198,000, which she uses toward the deposit. However, Zara’s adviser warns her that remitting the funds could expose them to IHT if she becomes deemed domiciled later. She decides to remit only what she needs and keeps the rest offshore, leveraging the TRF’s flexibility.

How to Plan Strategically for the TRF?

None of us wants to leave money on the table, so strategic planning is key. Start by mapping your offshore FIG and forecasting your UK spending needs for 2025–2028. If you’re eyeing a big purchase (e.g., property or business investment), designate funds early to lock in the 12% rate. For trusts, work with a tax adviser to structure capital payments correctly. If you’re unsure about remitting, you can designate funds now and decide later—there’s no rush to bring the money onshore. Finally, consider the FIG regime’s four-year exemption for new residents; if you qualify, you might delay TRF use until closer to 2028.

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Summary of Key Points and Next Steps for the TRF

Now, you’ve got a solid grip on the Temporary Repatriation Facility (TRF) and its 12% tax rate, but let’s tie it all together with the most critical takeaways. Whether you’re a non-dom with offshore wealth, a business owner eyeing UK investments, or a trust beneficiary, the TRF could save you a fortune—or trip you up if you’re not careful. This part distills everything into 10 key points, each packed with practical insights to help you decide if the TRF is right for you. We’ll also touch on rare scenarios and long-term planning to ensure you’re ready to act before the 5 April 2028 deadline.

What Are the Must-Know Facts About the TRF?

So, the question is: what’s the bottom line? Here are the 10 most important points to guide UK taxpayers and business owners through the TRF:

1. The TRF Offers a Low Tax Rate for Offshore Funds: From 6 April 2025 to 5 April 2028, you can bring pre-2025 foreign income and gains (FIG) into the UK at 12% tax (2025/26–2026/27) or 15% (2027/28), compared to up to 45% under standard rates.

2. Eligibility Is Specific but Broad: You qualify if you’re a UK resident who claimed the remittance basis between 2017/18 and 2024/25, aren’t deemed UK-domiciled before 2025/26, and have pre-6 April 2025 FIG, including trust distributions.

3. It’s a Time-Limited Opportunity: The TRF ends on 5 April 2028, so you need to designate funds on your Self Assessment tax return by 31 January 2029 for the 2027/28 tax year to lock in the reduced rate.

4. You Don’t Need to Remit Immediately: Designating funds for TRF treatment means committing to the 12% tax, but you can delay remitting the money to the UK, giving you flexibility for future planning.

5. Trusts Can Benefit Significantly: Capital payments from offshore trusts with pre-2025 FIG qualify for the 12% rate, potentially saving beneficiaries thousands compared to the 45% income tax rate.

6. Mixed Funds Are Simplified: The TRF’s relaxed tracing rules make it easier to designate specific income or gains from mixed accounts, avoiding the usual headache of untangling complex fund histories.

7. No Foreign Tax Credits Apply: If you’ve paid tax abroad on your FIG, you can’t offset it against the TRF’s 12% rate, so compare the total cost to standard UK rates before deciding.

8. Pre-2008 Trust Gains Are a Bonus: Capital gains in offshore trusts from before 6 April 2008 can be designated as clean capital at 0% tax, a rare opportunity for trust beneficiaries.

9. Inheritance Tax Risks Need Attention: Remitting funds via the TRF could expose them to UK inheritance tax (IHT) if you become deemed domiciled (10+ years of residence from 2025), so plan with IHT in mind.

10. Professional Advice Is Crucial: Given the TRF’s complexities (e.g., trusts, mixed funds, or exchange rate risks), consult a tax adviser to ensure eligibility and maximize savings.

What Should You Do Next?

Now, consider this: if the TRF sounds like a fit, how do you get started? First, take stock of your offshore FIG—list all income, gains, and trust distributions earned before 6 April 2025. Use the step-by-step guide from Part 2 to confirm eligibility and calculate potential savings. For example, if you’re like Priya from Part 1, with £500,000 in offshore dividends, designating them under the TRF could save you £165,000 compared to standard rates. If you’re dealing with trusts, like Ewan in Part 2, focus on structuring capital payments to qualify for the 12% rate.

How to Handle Rare Scenarios?

Be careful! Some situations require extra caution. If you’re a non-resident who becomes UK resident after 2025, you might qualify for the FIG regime’s four-year tax exemption, delaying TRF use until closer to 2028. For trusts with pre-2008 gains, act fast to designate them at 0% tax, as this exemption is unique. If your FIG is in illiquid assets (e.g., foreign property), you’ll need liquid funds to pay the TRF tax, so consider selling assets or borrowing. Exchange rate fluctuations are another wrinkle—monitor currency trends to avoid losing value when converting to sterling.

Long-Term Planning Beyond the TRF

None of us wants to be caught off guard when the TRF ends. After 5 April 2028, any undesignated FIG remitted to the UK will face full tax rates (up to 45% for income, 20% for gains). If you’re a new UK resident, leverage the FIG regime’s four-year exemption to delay remittances, but don’t miss the TRF window for pre-2025 funds. For trusts, explore rebasing assets to 6 April 2025 values to minimise future capital gains tax, as allowed under the new rules (verified at www.gov.uk/guidance/foreign-income-and-gains-regime-from-6-april-2025). Finally, keep an eye on IHT changes—offshore trusts lose IHT protection after 10 years of UK residence, so plan asset transfers carefully.

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FAQs

Q1: What is the Temporary Repatriation Facility (TRF) in the UK?

A1: The TRF is a temporary scheme allowing UK residents to tax pre-6 April 2025 foreign income and gains at a reduced rate of 12% (2025/26–2026/27) or 15% (2027/28) when designating funds for remittance to the UK.

Q2: Who is eligible to use the TRF?

A2: UK residents who claimed the remittance basis between 2017/18 and 2024/25, are not deemed UK-domiciled before 2025/26, and have pre-6 April 2025 foreign income or gains qualify for the TRF.

Q3: How long is the TRF available?

A3: The TRF runs from 6 April 2025 to 5 April 2028, with designations made via Self Assessment tax returns by 31 January following the relevant tax year.

Q4: Can non-residents use the TRF?

A4: Non-residents cannot use the TRF unless they become UK residents in the year they designate funds, subject to meeting other eligibility criteria.

Q5: What types of income qualify for the TRF?

A5: Pre-6 April 2025 foreign income, such as dividends and interest, and capital gains from offshore assets, including trust capital payments, qualify for the TRF.

Q6: Does the TRF apply to income earned after 6 April 2025?

A6: No, only foreign income and gains earned before 6 April 2025 are eligible for the TRF’s reduced tax rates.

Q7: Can you designate funds without remitting them to the UK?

A7: Yes, designating funds for TRF treatment incurs the 12% tax, but actual remittance to the UK can be delayed for strategic planning.

Q8: How does the TRF affect offshore trusts?

A8: Capital payments from offshore trusts with pre-2025 income or gains can be taxed at 12% under the TRF, but income distributions do not qualify.

Q9: Are foreign taxes credited against the TRF tax?

A9: No, taxes paid abroad on foreign income or gains cannot be offset against the TRF’s 12% or 15% tax rate.

Q10: What happens if you miss the TRF deadline?

A10: After 5 April 2028, undesignated foreign income or gains remitted to the UK will face standard tax rates, up to 45% for income or 20% for capital gains.

Q11: Can the TRF be used for mixed funds?

A11: Yes, the TRF simplifies tracing rules, allowing specific income or gains in mixed funds to be designated at the reduced tax rate.

Q12: How does the TRF interact with the new FIG regime?

A12: The TRF complements the Foreign Income and Gains regime by offering a discounted tax rate for pre-2025 FIG, while the FIG regime taxes post-2025 FIG for residents.

Q13: Are there any exemptions for pre-2008 trust gains?

A13: Capital gains in offshore trusts from before 6 April 2008 can be designated as clean capital under the TRF, taxed at 0%.

Q14: Can you amend past tax returns to qualify for the TRF?

A14: If you were eligible for the remittance basis but didn’t claim it between 2017/18 and 2024/25, you may amend past returns to meet TRF eligibility.

Q15: Does the TRF affect inheritance tax (IHT) liability?

A15: Remitting funds via the TRF may expose them to IHT if the individual becomes deemed UK-domiciled after 10 years of residence from 2025.

Q16: Can businesses use the TRF for offshore profits?

A16: Businesses owned by eligible individuals can use the TRF for pre-2025 foreign profits, but the designation applies to the individual’s tax return, not the business entity.

Q17: How is the TRF tax calculated on designated funds?

A17: The 12% (or 15% in 2027/28) tax is applied to the sterling value of designated foreign income or gains at the time of designation.

Q18: What records must be kept for TRF compliance?

A18: Individuals must retain records of designated funds and remittances for at least six years, as HMRC may audit TRF claims.

Q19: Can you change designated funds after submission?

A19: No, once funds are designated for TRF treatment on a tax return, the designation is final and cannot be altered.

Q20: How does currency exchange affect TRF remittances?

A20: Exchange rate fluctuations can impact the sterling value of remitted funds, potentially increasing or decreasing the effective tax cost under the TRF.

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About the Author

Mr. Maz Zaheer, FCA, AFA, MAAT, MBA, is the CEO and Chief Accountant of My Tax Accountant and Total Tax Accountants—two of the UK’s leading tax advisory firms. With over 14 years of hands-on experience in UK taxation, Maz is a seasoned expert in advising individuals, SMEs, and corporations on complex tax matters. A Fellow Chartered Accountant and a prolific tax writer, he is widely respected for simplifying intricate tax concepts through his popular articles. His professional insights empower UK taxpayers to navigate their financial obligations with clarity and confidence.

https://www.linkedin.com/in/totaltaxaccountants/

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