RDRM35820 | Remittance basis: Amounts remitted: Special mixed funds: Qualifying account

As part of the special mixed fund rules the individual must nominate an account – the ‘Qualifying Account’ for the purposes of s809RA ITA07. Certain conditions have to be fulfilled to ensure that the nomination of the qualifying account is valid.

Conditions:

• The individual must notify the Commissioners in writing with the details of the account, this must include the qualifying date of the account

• The qualifying date is the first date on which more than £10 is paid in to the account that derives wholly or in part, (directly or indirectly) from general earnings of the individual for a relevant tax year in relation to the employment

• A relevant tax year in relation to the employment is one where the individual’s earnings include both general earnings from s15(1) and s26(1) of ITEPA 2003

• The account must be an ordinary bank account held by and for the benefit of the individual; the account can be held jointly with others

• Immediately before the qualifying date the account cannot have a credit balance of more than £10

• An individual may only nominate one account at a time

• A nominated account cannot be the qualifying account of two or more individuals at any time

For the purposes of this an ordinary bank account is one that is a cash account in a bank, it can be a current or a savings account.