RDRM35720 - Remittance basis: Mixed funds: Cleansing mixed funds: Joint accounts

There was nothing to prevent the cleansing of a joint mixed fund account, and if only one individual qualified, he or she could cleanse their share of the joint account. Individuals needed to identify the funds contained within the account which were theirs, as well as identifying what those funds were – income, capital or chargeable gains.

Example

Diego and Giselle have joint foreign bank accounts, one of which is a mixed fund.

Both are qualifying individuals for the purposes of the cleansing provisions.

The following amounts have been identified in the account:

2011-2012 £1 million foreign income split 50/50 between the 2

2012-2013 £500,000 foreign income split 50/50 between the 2

2012-2013 £15 million clean capital all arising to Giselle

2013-2014 £6 million foreign gain all arising to Diego

Nominated transfers are made with individual new accounts being created for Giselle’s clean capital and Diego’s foreign gains

Giselle’s new account: £15 million clean capital from 2012-2013.

Diego’s new account £6 million foreign gain from 2013-2014.

If desired the 2 new accounts could both be in joint names.

The original account contains the £1.5 million foreign income and is still a joint account.