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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Effects of residence/domicile: residence etc: individuals - for years up to and including 2012-13

TCGA92/S2

Detailed guidance is provided at CG25000+. Briefly, an individual is within the charge to Capital Gains Tax for any year of assessment during which he or she is at any time in the year of assessment

  • resident and ordinarily resident in the UK
  • resident but not ordinarily resident in the UK
  • not resident but ordinarily resident in the UK.

But see CG11000 for individuals who are members of a partnership controlled abroad.

If a chargeable gain accrues to an individual in a year when they are neither resident nor ordinarily resident in the UK then (subject to the temporary non-residence rules in TCGA92/S10A and the gain not arising on assets used for a trade, profession or vocation carried on in the UK - see below) they will not be chargeable on that gain even if they later become UK resident and enjoy the gain in the UK after that time. Where the concessionary treatment (ESC D2) described at CG10972+ applies, gains which accrue at a time when an individual is not resident are not taxed if or when they are remitted, subject always to TCGA92/S10A.

For guidance on TCGA92/S10A, see CG26100+.

An individual who is neither resident nor ordinarily resident in the UK for a year of assessment is not normally within the charge to Capital Gains Tax (see above). However if the individual carries on a trade, profession or vocation in the UK through a branch or agency that individual is within the charge as regards gains on assets relating to that activity (TCGA92/S10). For further details see CG25500+.