English to Romanian Bus/Financial Finance (general)

A loan of clean capital* to a trust enables the loan to be repaid out of the capital/capital gain pot, but for the loan repayments to be deemed to be made out of clean capital in priority to capital gain. In effect, until such time as the loan is fully repaid, provided the loan is repaid only out of capital/capital gains (and not income) no liability to UK tax should arise on remittances to the UK.

*"clean capital" refers to money or assets which are not contaminated by income or gains and which can be brought into the UK without paying UK tax.

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