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HMRC internal manual

Capital Gains Manual

Arrival in and departure from the UK: ESCD2: departures - to 5 April 2013

It is the practice, as stated in HMRC6 (‘Residence, Domicile and the Remittance Basis’, which replaced leaflet IR20 in 2009), to treat individuals leaving the UK to serve full time under a contract of employment as being not resident and not ordinarily resident for the whole period of absence where

  • all the duties of the contract are performed abroad
  • the period of absence includes a complete year of assessment


  • none of the other conditions in HMRC6 are breached.

In order for ESCD2 to apply in the year the individual ceases to be UK resident he or she must have been non resident in at least four of the seven immediately preceding tax years, see CG25740. Whether ESCD2 applies in the year they return to the UK will depend on the period for which they were in fact non-resident; not (if different) on the terms of their contract, see CG25730.