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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Arrival in and departure from the UK: temporary non-residents - to 5 April 2013

Finance Act 1998 introduced TCGA92/S10A, see CG26100+, which modifies TCGA92/S2 so that certain gains accruing to former UK residents during a period of temporary non-residence abroad (broadly defined as a period of less than five full tax years) are chargeable as if they accrued in the year of return to the UK. ESCD2 was revised; see CG25720, to bring its terms broadly into line with the provisions of Section 10A.

Consequently, for departures on or after 17 March 1998, gains on disposals after the date of departure, which previously might not have been charged to Capital Gains Tax, may now be chargeable under TCGA92/S2 because of TCGA92/S10A if the individual concerned later resumes residence in the UK. See the example at CG25750.

However, there will still be cases where such gains will not be chargeable to Capital Gains Tax, for example where the individual remains non-resident for more than five tax years, and the guidance in the following paragraphs will be relevant in those cases.