Effects of residence/domicile: arrivals during a tax year - for years up to and including 2012-13
Where a taxpayer arriving in the UK has not been resident or ordinarily resident in the United Kingdom at any time during the five years of assessment immediately preceding the year of assessment in which he or she arrives in the United Kingdom, concessionary treatment is available under paragraph 1 of ESC D2. In such cases gains from disposals made in the year of arrival before the date of arrival are not chargeable to Capital Gains Tax.
Where the taxpayer was previously resident in the UK and there are less than five tax years between the year of return and the earlier year of departure then the concessionary treatment does not apply. Gains from disposals made in the year of arrival both before and after the date of arrival are chargeable to Capital Gains Tax. (Remember that gains from disposals made in a tax year before the year of return may be chargeable in the year of return, see CG26110+.)
Note that concessionary treatment under ESC D2 will always be available to an individual who arrives in the UK to take up residence for the first time and who has not previously been UK resident for tax purposes.
ESC D2 does not apply for 2013/14 and later years following the introduction of the Statutory Residence Test. Guidance on the Statutory Residence Test can be found in the RDR3 Guidance Note: Statutory Residence Test (SRT).