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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 in this guidance note and in the linked examples. For the interaction between the remittance basis and foreign bank accounts for the tax years to 5 April 2012, see the Remittance basis and foreign currency bank accounts guidance note.

It is possible that taxpayer’s older mixed funds may have been cleansed between 6 April 2017 and 5 April 2019. See the Remittance basis ― mixed fund cleansing (April 2017