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HMRC internal manual

Capital Gains Manual

Effects of residence/domicile: residence etc: individuals - years from 2013-14

TCGA92/S2

A Statutory Residence Test for individuals applies for the years from 6/4/2013. Detailed guidance on the Statutory Residence Test can be found in the Residence Domicile and Remittance Manual.

Other guidance is provided at CG25000+. Briefly, an individual is within the charge to Capital Gains Tax for any year of assessment for which he or she is resident in the UK. If the year is a split year then the charge is normally limited to the gains arising in the UK part of the split year.

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 not resident in the UK or the overseas part of a split year then normally 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.

This general rule is subject to certain exceptions:

  • Where the temporary non-residence rules in TCGA92/S10A apply. For guidance on TCGA92/S10A, see CG26100+.
  • Gains attributed under TCGA92/S86 that arise in a year are treated as falling within the UK part of a slit year. See CG38400+.
  • The gain arises on assets used for a trade, profession or vocation carried on in the UK (see below).

An individual who is not 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-CG25621.