Temporary Repatriation Facility

If you previously used the remittance basis as a non-dom, the Temporary Repatriation Facility (TRF) is a unique, time-limited opportunity to bring historic wealth into the UK on favourable terms. It allows you to designate foreign income and gains that were previously shielded from UK tax under the remittance basis, creating a practical route to repatriate those funds.

For many former non-doms, this is the first clear opportunity to "unlock" offshore FIG without suffering the full tax cost that would otherwise apply. If you intend to live, invest, or spend in the UK, that can materially improve your liquidity and long-term planning position.

Why the TRF Is a Game-Changer

If you want to access offshore incomes and gains efficiently, the value of the TRF lies in its flat tax rates. You can designate qualifying amounts at 12% for the 2025/26 and 2026/27 tax years, rising to 15% for 2027/28 tax year.

That shift is significant because the alternative may be exposure to the 45% additional rate - the TRF can preserve a substantial portion of your wealth that would otherwise be lost to tax on remittance. By way of example:
‍

• If £1,000,000 of foreign income is taxed at the normal 45% rate, the UK tax charge would be £450,000.
• If the same £1,000,000 is designated under the TRF at 12%, the tax charge would be £120,000.
• As such, the TRF preserves £330,000 of your wealth in this example.
  ‍

That's not a typo. You could save over a quarter of a million pounds by using the facility instead of waiting.

How Designation Actually Works (And Why It's Brilliant)

‍
To use the TRF, you must be UK resident in the tax year in which you make the designation. To do this, you should first confirm your residence status for the relevant year under the normal UK residence rules.

A crucial technical point relates to Foreign Tax Credit (FTC) relief. You cannot claim FTC for overseas tax already paid on the designated foreign incomes or gains. However, you are permitted to deduct that foreign tax from the gross amount before the relevant TRF rate is applied.

One of the most misunderstood aspects of the TRF is that designation is not the same as remittance. When you elect to use the TRF, you're not required to physically bring the money into the UK immediately. Instead, you:
‍

1. Designate the foreign income or gains on your Self Assessment tax return
2. Pay the 12% or 15% tax on the designated amount
3. Remit the funds whenever you want, tomorrow, next year, or never

This separation of tax payment from cash flow is incredibly powerful for planning purposes.

For example, you might designate £5 million of offshore gains in the 2025/26 tax year, pay £600,000 in tax, but leave the actual funds offshore for another three years while you figure out your UK investment strategy. Once designated and taxed under TRF, those funds can come into the UK at any future point without additional UK tax.

This also means you can strategically designate amounts you might want to bring to the UK later, locking in the low rate as insurance, even if you're not certain about remittance timing.

The Countdown

The TRF operates within a strict filing timetable. The deadline for making a claim is 31 January following the end of the relevant tax year.
‍

• For 2025/26: You must file your election by 31 January 2027
• For 2026/27: You must file by 31 January 2028
• For 2027/28: Final chance, deadline 31 January 2029

That means the absolute final opportunity to utilise the facility will be 31 January 2029, following the end of the 2027/28 tax year. If you are considering a designation, it is sensible to review the figures before that closing date.

‍

Making Your Decision: The Questions to Ask

If you're trying to figure out whether to use the TRF or wait, here are the critical questions you need honest answers to:

1. How much foreign income and gains do you have offshore?

The larger the amount, the more meaningful the tax savings. If you're sitting on seven or eight figures, the TRF could save you enough to buy a house, in cash.

2. Are you certain about your long-term residence plans?

If there's any chance you'll remain UK resident beyond 2030, waiting eliminates your ability to use the facility. That's a huge risk.

3. Can you afford the upfront tax payment?

The TRF requires you to pay the 12% or 15% tax on designation, even if you don't immediately remit. You need liquidity to make this work. That said, compared to the alternative of 45% later, it's still a bargain.
‍

The Bottom Line: Time Is Your Biggest Risk

If you are planning to settle in the UK permanently and you expect to invest in property, support your lifestyle, or deploy capital here, the TRF can be an essential liquidity tool. For former remittance basis users, it may offer one of the most efficient routes to bringing wealth into the UK.

However, the facility is not necessary in every case. If you are only in the UK for a short period and have no intention of ever bringing your capital here, you may decide that making a designation is not required.