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Individuals do not have to remit their pre-6 April 2025 income and gains during the temporary repatriation facility (TRF) period in order to benefit from the low tax rate, although they can if they choose to. Instead, individuals designate amounts on which they pay the TRF charge, which can then be remitted in the future without incurring any further tax charges.

In order to be designated, amounts must meet the definition of ‘qualifying overseas capital�.

There are, broadly, six types of qualifying overseas capital:

First are amounts that arose in the tax year 2024-25 or an earlier tax year as personal foreign income or gains when the individual was subject to the remittance basis � see RDRM72200 for the relevant criteria. This includes amounts that have either not been remitted to the UK or are remitted during the TRF period.

Secondly, former remittance basis users may have amounts overseas that they are uncertain as to the source. These amounts can also be qualifying overseas capital � see RDRM72300.

Third are capital payments received in tax years 2025-26 to 2027-28 matched to section 1(3) TCGA 1992 amounts that arose within an offshore structure (or migrated settlement) prior to 6 April 2025 see RDRM72400 for the relevant criteria.

Fourth are amounts treated as being the individual’s income under the settlements legislation because of benefits received from a non-resident trust in any of the tax years 2025-26 to 2027-28 that is matched with pre-6 April 2025 protected foreign source income or transitional trust income of a non-resident trust� see RDRM72500 for the relevant criteria.

Fifth are amounts that would have been treated as being the individual’s income in tax years before 2025-26 because of them being the settlor of a settlement but were not because it was treated as arising only when remitted � see RDRM72500 for the relevant criteria.

Sixth are amounts treated as being the individual’s income in any of the tax years 2025-26 to 2027-28 because of receiving a benefit from a non-resident trust that is assessable under the transfer of asset abroad legislation where the benefit is matched with relevant foreign income arising before 6 April 2025 � see RDRM72550.

For details of how to designate qualifying overseas capital see RDRM73000 onwards.