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Topic: Clean Capital Separate Account  (Read 699 times)

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Clean Capital Separate Account
« on: February 10, 2017, 09:43:18 AM »
I have a very basic question about the mechanics of creating a ring-fenced account for clean capital.
I will be selling a mixed fund at Vanguard to separate the clean capital from the gains, and need to be sure I do it correctly.  I plan to exchange all shares into my Vanguard Prime Money Market account, and leave there for the time being.  When ready to transfer to the UK, I will do the accounting to separate the "clean capital" from the gains and open a non-interest bearing checking account for the specific purpose of keeping the clean capital separate. Once it has cleared that account and I am ready to send to the UK I will do so. Does that sound right?


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Re: Clean Capital Separate Account
« Reply #1 on: February 10, 2017, 12:17:28 PM »

Is the proposal to use the two year “cleansing” window for mixed funds, for 2017/18 and 2018/19? This will not be possible under 6 April 2017.
The explanatory notes to the Finance Bill 2017 can be see here
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/574679/Explanatory_Notes_-_draft_provisions.pdf
The cleansing rules, including the need to make a nomination, are set out at page 166 et seq. It should be remembered that changes to these proposed rules could be made before they are finalised.


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Re: Clean Capital Separate Account
« Reply #2 on: February 10, 2017, 02:23:48 PM »
Is the proposal to use the two year “cleansing” window for mixed funds, for 2017/18 and 2018/19? This will not be possible under 6 April 2017.
Yes, that is correct.  I am thinking of selling now, and then doing the cleansing accounting after April 6.
Thank you for the link to the document. Could you explain what a "nomination" is?  I did not see any reference to it in the document.


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Re: Clean Capital Separate Account
« Reply #3 on: February 10, 2017, 04:06:22 PM »
The nomination is mentioned in the fourth bullet point of paragraph 99 on page 166 of the notes.


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Re: Clean Capital Separate Account
« Reply #4 on: February 10, 2017, 04:24:47 PM »
Got it. Thank you.


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