Overseas Workday Relief from a mixed fund

[darthblingbling]

Quick question to see if this is allowable:

Client who is a non dom, wanted to claim OWR so has all his income paid into an overseas account. Unfortunately however he put £200000 of clean capital into this account before the first employment payment was made, therefore he cannot claim nominate the account for special mixed funds rules and must use the usual mixed fund rules.

However, there appears to be a window up until the 5th April 2019 in which HMRC are allowing individuals to place clean capital back into another account, seperate from other income. Assuming he places the £200000 into another account and uses this account purely for employment income, could it retroactively be considered a special mixed fund account?

[The Ivy Office Ltd]

As I Understand it

The two year window for rearranging mixed funds only applies to those who have become deemed domiciled under the 15 year rule on 5th April 2017.

As OWR only applies to newly resident individuals it seems your client does not fall into this

dennis@taxesclear.co.uk

[darthblingbling]

Cheers.

[maths]

Whilst it is getting increasingly difficult (at least for me) to keep up with the non-dom changes (and of course they are not yet finalised by a long way) I do not believe the statement by Taxesclear as follows is correct:

The two year window for rearranging mixed funds only applies to those who have become deemed domiciled under the 15 year rule on 5th April 2017.

The ability to "cleanse" is much broader encompassing other non-doms. The relevant draft legislation is contained in F Bill Sch 8 Part 4 para 44 sub-paras (2) and (3) where a "qualifying individual" is defined.