RDRM73320 - Temporary repatriation facility: Designating qualifying overseas capital: Designation process: Time limits
Source: gov.uk (2025-04-07)


Overview (#Overview)

Amending an election (#Amending an election)

Withdrawing an election (#Withdrawing an election)

Late claims (#Late claims)

Consequential claims (#Consequential claims)﻿

Overview

For individuals who wish to make a designation under the temporary repatriation facility (TRF), an election must be made in their Self Assessment tax return for the relevant tax year.

The time limit for making a designation election is the anniversary of 31 January following the end of the tax year to which the election relates, so 12 months from the normal filing date. For example, the normal filing date for a 2025-26 return will be 31 January 2027, so the time limit for making a designation election for the 2025-26 tax year will be 31 January 2028.

There are three tax years within the TRF period. The latest dates by which designation elections can be made are:
- 31 January 2028 for the 2025-26 tax year
- 31 January 2029 for the 2026-27 tax year
- 31 January 2030 for the 2027-28 tax year
Amending an election

Designation elections can be amended and the time limit for doing so is the same as for making an election, unless a notice to file was issued after 31 October following the end of the tax year to which the designation election relates. Providing the original election is made by the anniversary of 31 January following the end of the tax year, the election can be amended up to the anniversary of 3 months following the date of the notice to file.

Example 1

Pearl was given a notice to file for the 2025-26 tax year dated 20 December 2027. The time limit for making a designation election for 2025-26 is 31 January 2028. Providing Pearl makes her election in time (by 31 January 2028) she has until 20 March 2028 to amend this election (the anniversary of 3 months from the date of the notice to file).

Withdrawing an election

Outside of the timeframe to amend an election, a designation election cannot be withdrawn.

This means that if an amount has been designated in a tax return for an earlier year, and the amounts are no longer available for remittance to the UK, there can be no repayment of the TRF charge.

Example 2

Norris is a UK resident and former remittance basis user. On 6 April 2025 he has £20,000 of foreign income from 2022-23 in an overseas bank account.

Norris’s daughter gets engaged so he may need to remit these funds after the TRF period to pay for her wedding. In order to make the most of the TRF rates he makes a designation in his 2025-26 tax return in respect of these funds. He can amend this designation up until 31 January 2028.

On 28 February 2028 Norris’s daughter decides to get married in Spain, so Norris spends the £20,000, which is now designated qualifying overseas capital, in Spain. As Norris didn’t amend his designation before 31 January 2028, he will be unable to amend the designated amount, even though he is now unable to remit the £20,000 to the UK. He also cannot remit other funds tax-free in place of the £20,000 of designated qualifying overseas capital spent offshore.

Late claims

A late claim is an attempt to make a claim outside the statutory time limit. There is no provision within the TRF legislation that allows Commissioners to exercise their discretion to accept a late designation election. This means that a late election can only be allowed if it can be accepted under HMRC’s late claims policy.

Late claims are covered in more detail in the Self Assessment Claims Manual at SACM10030 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm10030) onwards. The legislation does allow a taxpayer to make various out-of-time actions where HMRC makes a discovery assessment or amends a return in an ITSA enquiry closure notice (see ‘Consequential claims’ below).

Consequential claims

If HMRC makes an assessment (for example, a discovery assessment) or amends a return to recover a loss of tax, legislation allows a taxpayer to make various out-of-time actions relating to claims and elections. These actions are known as consequential claims. Whether a consequential claim or election is allowed depends on the behaviour that has led to HMRC making the assessment or amendment.

Individuals can make a consequential designation election if an assessment or amendment is being made to recover a tax loss that is not brought about carelessly or deliberately by that person or by someone acting on their behalf. However, individuals are prevented from making a consequential election if an assessment or amendment is being made to recover a loss of tax brought about by careless or deliberate behaviour by section 36(3) TMA 1970, which restricts the consequential actions allowed to claims to a relief or an allowance.

This means that where HMRC makes an assessment or amendment to bring into charge tax on a remittance where the loss of tax is brought about by careless or deliberate behaviour, a consequential designation election under the TRF will not be possible.

Guidance on consequential claims, including the time limits which apply to these claims, can be found in the Self Assessment Claims Manual at SACM9000 (https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm9000).