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HMRC internal manual

Capital Gains Manual

Arrival in and departure from the UK: recovery of held-over gain on departure

After a gain has been held-over on the occasion of the making of a gift, there are some circumstances in which the held-over gain will become chargeable on the recipient of the gift. This will happen where there has been a claim to hold over a gain on a gift under

  • Section 165 TCGA 1992 and Schedule 7 TCGA 1992 (relief for gifts of business assets)


  • Section 260 TCGA 1992 (gifts on which inheritance tax is chargeable etc)

and the individual or trustee who is the transferee then becomes neither resident nor ordinarily resident* in the United Kingdom, see CG67270+. Such a charge should be considered as soon as it is known or suspected that the transferee has become non-resident and not ordinarily resident* in the UK.

A Statutory Residence Test for individuals was introduced for years from 6/4/2013.

*For 2013/14 and later years the ordinary residence test no longer applies.

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