RDRM35610 - Remittance basis: Mixed funds: Cleansing of mixed funds: Introduction

This page and those that follow that deal with mixed fund cleansing have been published purely to illustrate the procedures and conditions that were required at the time cleansing was applicable.

The second Finance Bill of 2017 allowed certain individuals to cleanse their mixed fund accounts. The following guidance explains the conditions, how they applied, and gives illustrative examples.

The cleansing of mixed funds was available to individuals who had been taxed on the remittance basis, they had made a claim under Section 809B, or met the conditions in Sections 809D or 809E of the Income and Taxes Act (ITA) 2007.

Cleansing was not available to individuals who were born in the UK and have a UK domicile of origin.

The claim to remittance basis can have been made in any year from 6 April 2008 through to 6 April 2017 (2008-2009 to 2016-2017 tax years).

Cleansing was only available from 6 April 2017 to 5 April 2019 (2017-2018 and 2018-2019 tax years).

Individuals who were able to identify the make-up of their mixed fund were able to transfer money from one offshore account to another to cleanse it.

Income and gains in accounts that had arisen prior to 6 April 2008 could also be cleansed.