Remittance of funds

[taxcuriousanonymous]

My wife and I are currently UK resident althought we are not PRs or citizens. We would like to remit a sum of approx. £60-70k to the UK from our overseas account.

My question is - is there anyway in which we can legally avoid paying tax on it? The source of funds is from a mutual fund investment, and because it is purely fixed income, most of the balance is principal, with the remainder consisting of interest income / slight capital gains.

The funds were actually held in a joint account with her mother.

It was subsequently liquidated and transferred into her name.

If we wanted to claim the remittance as a loan from her mother, which is backed by a loan agreement which has a 'repayable on demand' clause, will this be sufficient to ally HMRC concerns on the taxable status of the remittance?

[Tax Champion]

The position is a bit unclear - are you non-doms, claiming remittance basis for UK tax purposes?
In any event, your wife would not be charged income tax on a transfer of capital, but only on the interest element. It is income and gains remitted to the UK which are chargeable to UK tax. If foreign tax has alredy been deducted at source, credit can (probably) be given for this against any UK tax liability, so there may not be any UK tax due.
The share of the funds that was originally in her mother's name is a straghtforward gift, so not taxable anyway.