ICAEW.com works better with JavaScript enabled.

TAXguide 02/19: Cleansing of mixed funds

This guide considers the areas of uncertainty in the Finance (No. 2) Act 2017 statutory provisions for the cleansing of mixed funds. It is formed of questions and answers from ICAEW and other professional bodies, together with comments from HMRC.

TAXguide 02/19 is one in a series of pieces of guidance on the taxation of foreign domiciliaries and non-UK resident trusts prepared by committee members of ICAEW, STEP CIOT and The Law Society. The guides aim to highlight areas of uncertainty in the statutory provisions introduced by Finance Act (No 2) Act 2017 with effect from 6 April 2017.

TAXguide 02/19

This guidance can be downloaded in full.


This guide examines the issue of cleansing mixed funds. While the mixed fund cleansing window ended on 5 April 2019 the remittance of cleansed funds can happen at any time.  As such, it is still a live issue and one HMRC might enquire into should a relevant transaction take place. 

The 74-page guide is split into 20 sections covering issues, such as: foreign currency, the meaning of account, the interaction between mixed-fund cleansing and rebasing, joint accounts and tax return disclosure. 

It also includes a summary of HMRC's comments to the questions provided by the professional bodies, as well as appendices outlining the legislation, HMRC guidance and a template for a cleansing nomination.

This guide is intended to assist professional advisers in considering the issue. It does not constitute advice and is not a substitute for professional consideration of the issues by such a professional adviser in each client’s specific context. As such, no liability is assumed to any person in respect of this guide.