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Temporary Repatriation Facility (TRF) – UK Remittance Claimers

tax

If you are a UK taxpayer who previously claimed the remittance basis on foreign income prior to April 5th, 2025, and have NOT yet remitted this income to the UK, the UK government are granting a 3-year window to elect to remit this income into the UK at a reduced tax rate.

The reduced tax rates are the following –

  • 2025-26 tax year – 12% flat rate on all income
  • 2026-27 tax year – 12% flat rate on all income
  • 2027-28 tax year – 15% flat rate on all income

Funds can be remitted from foreign mixed accounts, even those with uncertain origin or no records to confirm the original source of income. However, one cannot claim any foreign tax credit on the amounts claiming TRF relief.

Example

John has been a UK resident since moving from USA in 2015 and claimed remittance basis on foreign income in various tax years. John decides to remit in the 2025-26 tax year, US property income of £50,000. John has already paid US taxes of 15% on this income, John cannot apply the US tax paid as a credit in his UK tax return in 2025-26. So, effectively John will be taxed 27% in total on this income (15% in US and 12% in the UK).

CGT Rebasing

If you have previously claimed remittance basis on capital gains and want to remit this income as per TRF relief from tax year 2025-26, UK government are allowing you to rebase your assets to the market value on 5th April 2017.

Here are the following conditions required to enable you to rebase to 2017 value –

  • Must not be considered UK domiciled or deemed domiciled before 6th April 2025
  • Claimed remittance basis between 2017-18 and 2024/25 tax period
  • Must have held asset on 5th April 2017

Moved to the UK between 6th April 2022 and 5th April 2025

Please see my blog on FIG Regime – New arrivals to the UK from April 2025.

If you moved to the UK post April 6th, 2022, you may be eligible to claim Foreign Income & Gains relief (FIG), which allows you to remit foreign income tax free.

If you moved in 2022-23 tax year, you could claim FIG relief in 2025-26 tax year on foreign income earnt in that tax year. If you moved in 2023-24 tax year, you could claim FIG in 2025-26 and 2026-27 tax year and if you moved in 2024-25 tax year, you could claim FIG in 2025-26,2026-27 and 2027-28 tax year.