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STOP PRESS: At Spring Budget 2024, the Chancellor announced that the remittance basis would be abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

This guidance note explains the concept of ‘mixed funds’ and why they are important. Before reading this note, it is advisable to read the When are income and gains remitted? guidance note, as it describes the basic rules with which the mixed fund rules interact. An outline of the remittance basis can be found in the Remittance basis ― overview guidance note.

The mixed fund provisions do not apply to foreign income or gains that arose or accrued before 6 April 2008. For the earlier rules, see RDRM36000–RDRM36470 and Simon’s Taxes E6.332AA–E6.332B.

For simplicity, the foreign exchange implications of foreign currency bank accounts have been ignored