Legislation – Finance Act 2026
Schedule 3Non-resident, and previously non-domiciled individuals
Part 2Temporary repatriation facility
Capital payment derived from foreign income or gains
13
(1)
In paragraph 10—
(a)
in sub-paragraph (1) (income tax exemptions and relief)—
(i)
the words from “the” to the end become paragraph (a),
(ii)
in that paragraph, after “capital” insert “that is designated on the basis that it is qualifying overseas capital as a result of a remittance provision”
, and
(iii)
“, or
(b)
an amount of income treated as qualifying overseas capital under paragraph 6 that—
(i)
falls within sub-paragraph (1)(b) of that paragraph, and
(ii)
is designated on the basis that it is qualifying overseas capital as a result of a remittance provision.”, and
(b)
in sub-paragraph (2), after “paragraph 6” insert “, and that falls within sub-paragraph (1)(a) or (c) of that paragraph,”
.
(2)
In paragraph 12(1) (capital gains tax: main exemption), after “capital” insert “that is designated on the basis that it is qualifying overseas capital as a result of a remittance provision (other than paragraph 6(1)(b))”
.
(3)
In paragraph 8—
(a)
(i)
omit the “and” after paragraph (a), and
(ii)
“(aa)
for each amount designated, whether or not it is designated on the basis it is qualifying overseas capital as a result of a remittance provision, and”
(iii)
in paragraph (b), after “designated” insert “on that basis”
,
(b)
“(2B)
In this Part and in Part 2 “remittance provision” means paragraph 2(2) or (5) or paragraph 6(1)(b).
(2C)
Where—
(a)
an amount is designated on the basis it is qualifying overseas capital as a result of a remittance provision, and
(b)
the amount would (ignoring this sub-paragraph) also be regarded as designated under paragraph 3 or 5 (matched capital payments),
it is not to be regarded as designated under that paragraph for the purposes of paragraph 10(7) (relief for offshore income gains) or paragraph 13 (relief for matched capital payments) as a result of that designation on that basis.
(2D)
Accordingly two designations of the amount are required to secure the benefit of all of the reliefs that may be available under paragraphs 10(1), 10(7),12(1) and 13—
(a)
one designation of the amount on the basis it is qualifying overseas capital as a result of a remittance provision, and
(b)
another not on that basis.”, and
(c)
“(5A)
Where the individual considers that an amount designated under sub-paragraph (5) could, if it were qualifying overseas capital, be designated on the basis that it is qualifying overseas capital as a result of a remittance provision, the individual may designate it on that basis.”