Temporary repatriation facility: rates and qualifying funds
The Temporary Repatriation Facility lets eligible former remittance-basis users designate qualifying overseas capital at 12% in 2025-26 or 2026-27 and 15% in 2027-28.
Information only. Not tax, legal or financial advice.
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What changed from April 2025?
The remittance basis, which could defer UK tax on overseas income and gains kept abroad, ended on 6 April 2025. Old untaxed amounts can still create a charge when remitted, meaning brought to or used in the UK. The TRF offers a separate designation route during the tax years shown below.
HMRC’s introduction, manual updated 7 April 2026, supplies the start date and period. The non dom article explains the wider replacement rules.
Who can use the facility?
You must be UK resident in the designation tax year, have been subject to the remittance basis in an earlier year and have qualifying overseas capital. Having foreign savings or a non-UK domicile alone is insufficient.
These conditions come from HMRC RDRM73200, manual updated 7 April 2026. Use the statutory residence guide to start the residence check.
What funds and assets qualify?
The main category is foreign income or gains arising before 6 April 2025 while the remittance basis applied, still unremitted or remitted during the facility. Specified overseas amounts of uncertain origin can also qualify. Assets bought with eligible amounts and certain trust payments matched to earlier foreign income or gains can fall within the detailed rules.
HMRC RDRM72100, manual updated 7 April 2026, sets out the categories. A mixed bank balance needs records to distinguish its parts. Identifiable original capital is not automatically taxable simply because it is overseas.
Fresh income is not generally eligible. HMRC RDRM74600, manual updated 7 April 2026, explains an exception for specified employment earnings relating to earlier remittance-basis years but received during the facility.
How does designation work?
Designate the amount through the residence pages of Self Assessment and pay the separate charge. Designation means electing to bring an eligible amount within TRF. It does not require transferring the asset or cash immediately. The amount can be remitted later without another charge on that designated capital.
HMRC HS264, updated 6 April 2026, permits partial designations and requires records. See the SA109 guide for residence return reporting.
What should be checked after the Budget?
These are the rules checked before the Budget. HM Treasury’s notice, published 31 July 2026, sets the Budget for 28 October 2026. Check the Budget tracker and current HMRC guidance for any change. No future change is assumed here.
What are the TRF rates by year?
| Designation tax year | TRF rate |
|---|---|
| 2025-26 | 12% |
| 2026-27 | 12% |
| 2027-28 | 15% |
HMRC RDRM73400. Manual updated . Checked .
The year of designation sets the rate. No foreign tax credit is available against this charge (HMRC HS264, updated 6 April 2026). Using old income or gains to pay it can be an ordinary remittance unless that amount is also designated.
What else do readers ask?
Must I bring the money to the UK during the facility?
No. A qualifying amount can be designated during the facility and remitted later without another remittance charge on that designated amount.
Can I designate money while non-resident?
No. HMRC requires UK residence in the designation tax year, as well as earlier use of the remittance basis and qualifying overseas capital.
Can I designate only part of my eligible funds?
Yes. HMRC permits partial designations. Keep records that identify what was designated and how later remittances relate to it.
Is fresh foreign income automatically eligible?
No. Newly arising income is not generally covered. Certain later trust receipts matched to old income or gains and specified earlier employment earnings have special rules.
Where can I explore this further?
statutory residence test tool. Full sourced leavers tracker. Articles and tracker roundups.
Sources
- HMRC: RDRM71000: TRF introduction, .
- HMRC: RDRM73200: TRF eligibility, .
- HMRC: RDRM72100: Qualifying overseas capital, .
- HMRC: RDRM73400: TRF charge and rates, .
- HMRC: RDRM73100: TRF designations, .
- HMRC: RDRM74600: Pre-change employment income received later, .
- HMRC: HS264: remittances and TRF, .
- HM Treasury: Budget 2026 date, .