Skip to main content
HMRC internal manual

Capital Gains Manual

From:
HM Revenue & Customs
Published:
12 March 2016
Updated:
13 October 2026 - See all updates

CG25200 - Individuals: effects of residence, ordinary residence and domicile: charge to Capital Gains Tax

For the years up to and including 2012/13 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 that year of assessment

  • resident and ordinarily resident in the UK

    or

  • resident but not ordinarily resident in the UK

    or

  • not resident but ordinarily resident in the UK.

For 2013/14 and subsequent years the rules within the Statutory Residence Test will apply and ordinary residence is not considered.

Under the rules within the SRT an individual will be either resident or not resident in the UK for a year of assessment.

However for the year of assessment in which an individual either arrives in or departs from the UK, split year treatment may apply see CG10978.

Detailed guidance on the Statutory Residence Test can be found in the RDR3 Guidance Note: Statutory Residence Test (SRT).

But see CG11000+ and CG27850+ for individuals who are members of a partnership controlled abroad.

An individual’s domicile or from 6 April 2017 deemed domicile, is not relevant to their chargeability to tax, but it may, if the remittance basis applies, affect the timing of liability in respect of certain gains. See CG25313.


EU officials

The above rules do not apply to

  • representatives of foreign governments who are resident here or to those of their staff covered by the Diplomatic Privileges Act 1964
  • representatives (known as Agents-General) of the individual states of Australia and of the provinces of Canada (TCGA92/S11 (2))* together with those members of their staff who would have been covered by the Diplomatic Privileges Act 1964 if they had worked for a diplomatic mission rather than for an Agent-General (TCGA92/S11 (3))*.

Such persons are treated as exempt from Capital Gains Tax; however, this exemption doesn't apply to "private immovable property". For example, if a Diplomat owned an investment property and sold it, there would be no grounds for exemption from CGT.

In addition, exemption is granted to those members of visiting forces who would not otherwise be within the charge to Capital Gains Tax by deeming there to be no change in their residence or domicile status for the period of their posting to the UK (TCGA92/S11 (1))*.

The exemption that is provided to officials of the European Union from national taxes extends only to taxes on their income and earnings from the community. There is no specific exemption provided in respect of Capital Gains Tax. The liability to Capital Gains Tax of such officials should be determined on the normal basis.
 

*This section was re-written for disposals from 6 April 2019 see CG10150.


Visiting forces

In addition to the exemptions detailed above, exemption is granted to those members of visiting forces who would not otherwise be within the charge to CGT by deeming there to be no change in their residence or domicile status for the period of their posting to the UK (TCGA92/S11 (1))*.

*This sections was re-written for disposals from 6 April 2019 see CG10150.


European Community Officials

The exemption that is provided to officials of the European Community from national taxes extends only to taxes on their income and earnings from the community. There is no specific exemption provided in respect of Capital Gains Tax. The liability to Capital Gains Tax of such officials should be determined on the normal basis.