Temporary Repatriation Facility risks ‘falling short’ of its potential

The Temporary Repatriation Facility (TRF) risks falling short of its potential to bring significant overseas wealth into the UK and generate additional tax revenue for the economy, Utmost has warned.

Utmost senior relationship manager, Mark Jephcott, said the facility could become a missed opportunity to bring capital into the UK.

The TRF came into effect in April 2025 alongside the abolition of the non-dom regime, aiming to allow eligible former remittance basis users to bring historic foreign income and gains to the UK at preferential tax rates for a three-year period.

It was designed to generate economic activity and investment by encouraging capital that could otherwise remain overseas to be brought into the UK, while raising additional tax revenue for the Treasury.

However, Utmost warned that the TRF’s effectiveness could be limited by its relatively short lifespan, as individuals could potentially choose to remit only the funds they expect to need in the UK during that three-year period.

“We have seen relatively limited uptake of the TRF among our client base so far,” Jephcott commented.

“Had the facility been introduced for five or ten years, it could have potentially encouraged a sustained stream of capital into the UK and ultimately generated more tax revenue for the Exchequer.

“Ahead of the Autumn Budget, there is an opportunity for the government to consider extending the timeframe.

“A longer-term facility, potentially with rates that rise over time to encourage earlier action, could make the UK more competitive as a destination for internationally mobile wealth, while stimulating economic activity and generating tax receipts from funds that might otherwise remain offshore.”

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