Remittances from Mixed Funds

[letha]

Following on from the same conditions...non dom living in the UK was on the remittance basis now on the arising basis. What is the case with:

A rental property overseas and you receive rents of 15 and thus declare rental income of 15 but claim expenses of 16 giving a loss of 1 So can you remitt without additional tax, 15 because you declared income of 15 or none because you had a loss? What if you had a small profit?

You have investments in shares overseas and have capital gains of 15 and capital losses of 10. Can you remitt 15 or only 5? What happens if the losses and gains are in different years, so you have a loss in year one of 10 which you carry forward and then a gain of 15 in year two.

[maths]

A rental property overseas and you receive rents of 15 and thus declare rental income of 15 but claim expenses of 16 giving a loss of 1 So can you remitt without additional tax, 15 because you declared income of 15 or none because you had a loss? What if you had a small profit?

If the computation is in sterling on UK tax principles and produces a loss (of 1 in your example) any remittance does ot precipitate a UK income tax charge.

You have investments in shares overseas and have capital gains of 15 and capital losses of 10. Can you remitt 15 or only 5? What happens if the losses and gains are in different years, so you have a loss in year one of 10 which you carry forward and then a gain of 15 in year tw

If the sale proceeds from the sale producing the 15 gain and the loss of 10 are made in the same tax year and are credited to the same overseas account any remittance in the same tax year (up to the first 5) precipitates a CGT charge on the net 5. A remittance which occurs in a later tax year precipitates the same tax consequences.

In your second example the capital loss can be carried forward and used to offset the later capital gain; in which case any remittance up to the first 5 is subject to CGT.

[hiya]

Please can you confirm my understanding.

I have a mixed fund consisting of bank deposit and the interest earned. For the post 2008 interest, I have paid Tax on arising basis. If I remit in from this mixed fund,an amount equal to the interest post 2008, will it be considered as 'post 2008 income' only and so not liable for any more tax. I am UK non domiciled,

thanks for the clarification,

hiya

[maths]

In short, correct.

Assuming the only monies credited to the account post 2008 is interest earned on the account (taxed on the arising basis) then any remittance up to the aggregate interest credited post 2008 is a remittance of this interest and thus tax free.

[hiya]

In short, correct.

Assuming the only monies credited to the account post 2008 is interest earned on the account (taxed on the arising basis) then any remittance up to the aggregate interest credited post 2008 is a remittance of this interest and thus tax free.

Thanks a lot, maths. I couldn't get such clear cut answer from anywhere !

So in short there is no need to keep a separate capital and interest accounts, if the mixed account is going to be only bank deposit and its interest and if the plan is to remit only the post 2008 interest, on which tax has been paid on a arising basis.

[maths]

Correct.

Can do no harm to credit interest to separate account but not strictly necessary.

[hiya]

Correct.

Can do no harm to credit interest to separate account but not strictly necessary.

You are brilliant. Thank you very much,

hiya