RDRM73100 - Temporary repatriation facility: Designating qualifying overseas capital: Overview
Individuals using the temporary repatriation facility (TRF) do not have to remit the amount they designate during the TRF period in order to benefit from the low tax rate, although they can if they choose to.
In order to be designated, the amount must meet the definition of ‘qualifying overseas capital’ – this is explained at RDRM72000 onwards. In order to make designations, individuals need to meet specific criteria – see RDRM73200.
The TRF is a charge on amounts of net capital after the deductions of any foreign tax paid or payable – see RDRM73330.
Designations must be made in an individual’s Self Assessment tax return – the designation process and requirements are explained at RDRM73310 onwards. When an individual makes a designation, although they will actually make their designation in their tax return after the year end, the designation is treated as having taken place at the start of the tax year to which the return relates. So, for example, any amounts that an individual remits in the 2025-26 tax year and then designates in their 2025-26 return will be treated as designated qualifying overseas capital from 6 April 2025.
Guidance on quantifying amounts of designated qualifying overseas capital can be found at RDRM73500, and the interaction with the mixed fund ordering rules is explained at RDRM75100 onwards.