RDRM76400 - Temporary repatriation facility: Interaction with other rules and regimes: Effect on section 65(5)(b) IHTA 1984
Paragraph 13B Schedule 10 Finance Act 2025
Where a designation is made in respect of an amount of qualifying overseas capital under the temporary repatriation facility (TRF), which is a payment from a relevant property trust that if not designated would be treated as income of a person for Income Tax purposes, the effect of the designation is ignored for the purposes of section 65(5)(b) IHTA 1984. See IHTM04096 for further information about this Inheritance Tax provision.
Where a designation is made in respect of an amount of qualifying overseas capital which is a capital payment from the trust, any resulting deemed disposal under section 71 TCGA 1992 is treated for capital gains purposes as if it were a chargeable transfer for Inheritance Tax purposes. Therefore, Capital Gains Tax holdover relief may be claimed in relation to the deemed disposal, even though paragraph 13B disapplies any charge to Inheritance Tax on the same event. See CG67033 for further details.