Income Tax Act 2007 section 809RZC

Breaches of the TRF deposit rule

Section 809RZC defines what constitutes a breach of the TRF deposit rule when non-qualifying money is paid into a TRF capital account, and explains how such breaches can be remedied within a strict time limit.

• A breach occurs whenever any sum that is not TRF capital (a "prohibited sum") is paid into a TRF capital account on or after the qualifying date.
• A breach can be remedied by transferring out the total of the prohibited sums paid in on that day, via a single one-off transfer that does not result in any amount being remitted to the United Kingdom, within 30 days of the breach.
• If breaches occur on two separate days in a tax year, any further breach on a subsequent day in that same tax year cannot be remedied at all.
• A "prohibited sum" is any amount that is not TRF capital — in other words, money that does not properly belong in the TRF capital account.