"I heard there's a Temporary Repatriation Facility - is that something I should be using? I have no idea what it is."
Written by Suyesh Sharma, FCCA, Founder and Managing Director, Metta Accountants.
Published 4 June 2026
Let's Start at the Beginning - What Was the Remittance Basis?
Until 5 April 2025, certain UK residents - broadly those not domiciled in the UK - could elect to pay UK tax only on overseas income and gains they actually brought into the UK. Anything left sitting offshore was not taxed here. This was the remittance basis.
For expats and internationally mobile professionals with investments, rental income, bank deposits, business profits, or property gains sitting overseas, this was extremely valuable. The money built up abroad, often taxed locally, but untouched by HMRC - as long as it never arrived in the UK.
So What Exactly Is the TRF?
The Temporary Repatriation Facility is a three-year window - covering 2025–26, 2026–27, and 2027–28 - during which former remittance basis users can designate their old overseas funds and pay a reduced flat rate of tax to clean them up once and for all.
Once designated and taxed under the TRF, those funds can be brought to the UK at any time - this year or a decade from now - with no further UK tax charge whatsoever. They become permanently free capital.
The rates at a glance
Designations made on 2025–26 or 2026–27 tax returns. The lowest rate available - act now to lock it in.
2027–28 designations only. Still highly advantageous, but 3% more expensive than acting now.
No facility available. Remitting old overseas funds then faces standard UK rates - up to 45%.
Who Is This For? Am I Eligible?
The TRF is exclusively for former remittance basis users. To qualify you must meet all three conditions:
- Be UK tax resident in the year you make the designation
- Have previously paid tax under the remittance basis - either by actively claiming it on a return, or automatically as a short-term UK resident with modest overseas income
- Have qualifying overseas capital - pre-April 2025 foreign income or gains that were sheltered under the remittance basis and were never taxed in the UK
In the UK before 2025, with overseas funds kept offshore
If you lived in the UK as a non-domiciled resident before April 2025 and had overseas rental income, interest, investment gains, business profits, or property proceeds sitting untaxed in the UK - from any country - those funds are likely qualifying overseas capital.
TRF likely availableYou arrived in the UK in 2022-23 or later
Recent arrivals may fall under the new FIG regime - but this doesn't automatically rule out the TRF. If you claimed the remittance basis during any year between your arrival and April 2025, you may have accumulated pre-April 2025 foreign income and gains that qualify. The two regimes can apply to the same person. Speak to us to confirm which rules apply to your specific situation.
TRF - advice neededWhat Types of Overseas Asset Can Be Designated?
This is broader than most people expect. Qualifying overseas capital can be cash or non-cash, liquid or illiquid - and can come from any country.
Gains from overseas property sold before April 2025 where proceeds remain offshore and were sheltered under the remittance basis - whether from India, UAE, Nigeria, or elsewhere.
Savings interest, fixed deposit income, and other bank income accumulated in overseas accounts while on the remittance basis and never remitted to the UK.
Capital gains from overseas shares, mutual funds, bonds, or other investments arising before April 2025 and remaining offshore.
Profits from overseas businesses or trading activity accumulated offshore while on the remittance basis - including dividends from foreign companies left in overseas accounts.
You can designate funds invested in assets you still own. You do not need to sell first. This includes overseas property under development, share portfolios, and similar holdings.
If you are unsure whether overseas money is taxable or not, you can designate it for certainty. Paying 12% now and drawing a line under the position is often preferable to the risk of a future HMRC enquiry.
Let's Put This in Context
Arjun's overseas savings - kept offshore for a decade
Arjun moved to the UK from India in 2014 as a non-domiciled resident. Over the years he accumulated the equivalent of around £200,000 across his Indian NRO account and an investment account in the UAE - a mix of rental income, fixed deposit interest, and proceeds from selling shares. He paid local tax on these as they arose. He never brought the money to the UK, so under the remittance basis, no UK tax was due at the time.
Now the remittance basis is gone. Arjun wants to eventually bring this money to the UK to use toward a property purchase here. Without the TRF, those funds - if remitted after the window closes in April 2028 - could face income tax at up to 45% on the full amount.
With the TRF (acting now): Arjun designates £200,000 on his 2025–26 return and pays 12% - a TRF charge of £24,000. Those funds are then permanently clean. He can bring them to the UK this year or in ten years with no further UK tax charge.
Without the TRF: Remitting the same £200,000 after April 2028 could cost up to £90,000 in UK tax - on top of the local tax already paid overseas. The TRF saves him over £66,000 in this scenario alone.
How the TRF Works in Practice - Key Mechanics
You designate the amount on your UK self-assessment return for the relevant tax year. No detailed computation of the original gain is required - the flat rate applies to the net amount. This simplicity is one of the TRF's practical advantages.
The TRF charge does not reduce your personal allowance, does not use your income tax bands or CGT annual exempt amount, and does not count as pension-relevant income. It operates entirely separately from your normal tax computation - no hidden interactions to worry about.
Once designated and taxed under the TRF, funds can be remitted to a UK account at any point in the future with no further UK tax charge. Consider setting up a dedicated TRF capital account to hold these funds separately from other mixed overseas accounts - this keeps them clearly identifiable and avoids future mixed-fund complications. Where accounts contain both TRF-designated funds and other funds, TRF-designated amounts are treated as remitted first on any transfer to the UK.
Four Things You Must Know Before You Designate
Once the deadline for amending your tax return has passed, the designation is permanent - even if you later decide you will never bring the funds to the UK. Think carefully before committing, especially for large amounts.
Unlike normal UK CGT or income tax calculations, there is no credit for foreign tax against the TRF charge. For funds where overseas tax paid is very high relative to the gain, you may sometimes be better off not designating those specific assets.
If you bring funds to the UK during the TRF period, the designation must go on the return for that same tax year or an earlier one. You cannot go back and designate on a later return to cover a past remittance. Do not transfer funds to a UK account before the designation is in place.
There is no indication of any extension. On an overseas fund of £500,000, the difference between designating at 12% now versus missing the window entirely and facing 45% on remittance is over £165,000. This is a planning priority, not a nice-to-have.
What You Need to Do - Practically
Four actions to work through in order.
Review your historic UK tax returns. Did you claim the remittance basis, or were you automatically on it as a short-term non-dom resident? If you are unsure - or never filed a UK return at all - bring your situation to us. We can establish your position quickly.
Make a list of every pool of pre-April 2025 overseas income and gains that were sheltered under the remittance basis and never taxed in the UK. This includes overseas bank accounts, investment portfolios, property sale proceeds, business income, matured policies, and any other offshore assets - cash and non-cash, from any country.
For each pool, calculate what the TRF charge would be at 12% - and compare that to the likely tax cost of remitting without the TRF after April 2028. Also consider whether you ever genuinely intend to use these funds in the UK. If the honest answer is never, the case for designation may be weaker.
For the 12% rate, the designation must appear on your 2025–26 or 2026–27 self-assessment return. The 2025–26 return is due 31 January 2027. Do not leave this to the last minute - getting the numbers right requires proper documentation of what qualifies, particularly for mixed funds or illiquid assets.
Not sure if the TRF applies to you?
We work with former remittance basis users and internationally mobile professionals to identify qualifying overseas funds, model the TRF charge, and file designations correctly. The 12% window is open now.
Metta Accountants - UK Tax Specialists · Suyesh Sharma FCCA · Harrow, London
Suyesh Sharma
Founder & FCCA
Helping high earners and business owners keep more of what they earn through strategic planning.
