RDRM35650 | Remittance basis: Mixed funds: Cleansing of mixed funds: Part nomination

At the time of the nomination, if the individual has not emptied the original mixed fund of all of one kind of income, gains or capital, because for example, they intend to make further nominations and transfers of the same kind of income, capital or gains within the 2-year window; they will need to retain sufficient evidence which shows not only the amounts but also the years those amounts arose.

If the individual does not make further transfers within the 2-year window, the original account will remain a mixed fund. The individual will need to be able to demonstrate what is in the mixed fund, including the years the funds arose, in case of future remittances or offshore transfers.

Example

Natasha has a mixed fund containing:

2012-2013 foreign income £1,000,000

2013-2014 foreign income £2,300,000

2014-2015 foreign income £1,500,000 Total £4.8 million

2010-2011 foreign gain £500,000

2011-2012 foreign gain £750,000

2012-2013 foreign gain £2,500,000

2013-2014 foreign gain £1,500,000 Total £5,250,000

On 10 January 2018 Natasha nominates and transfers to an already existing account (containing only foreign gains) £4,500,000. She keeps sufficient evidence which shows the transfer consisted of:

£1,500,000 2013-2014 foreign gain

£2,500,000 2012-2013 foreign gain

£500,000 2010-2011 foreign gain

The £750,000 foreign gain from 2011-2012 remains in the original account for the time being, and because it does this remains a mixed fund.