Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
, see all updates

Arrival in and departure from the UK: text of ESCD2: departures on or after 17.3.98 and arrivals on or after 6.4.98 - to 5 April 2013

‘Residence in the United Kingdom: year of commencement or cessation of residence: Capital Gains Tax

An individual who comes to live in the United Kingdom and is treated as resident here for any year of assessment from the date of arrival is charged to Capital Gains Tax only in respect of chargeable gains from disposals made after arrival, provided that the individual 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 arrived in the United Kingdom.

An individual who leaves the United Kingdom and is treated on departure as not resident and not ordinarily resident here is not charged to Capital Gains Tax on gains from disposals made after the date of departure, provided that the individual was not resident and not ordinarily resident in the United Kingdom for the whole of at least four out of the seven years of assessment immediately preceding the year of assessment in which he or she left the United Kingdom.

This concession does not apply to any individual in relation to gains on the disposal of assets which are situated in the United Kingdom and which, at any time between the individual’s departure from the United Kingdom and the end of the year of assessment, are either:

  • used in or for the purposes of a trade, profession or vocation carried on by that individual in the United Kingdom through a branch or agency; or
  • used or held for, or acquired for use by or for the purposes of, such a branch or agency.

This concession does not apply to the trustees of a settlement who commence or cease residence in the United Kingdom or to a settlor of a settlement in relation to gains in respect of which the settlor is chargeable under Sections 77-79 TCGA 1992, or Section 86 and Schedule 5 TCGA 1992.

This revised concession applies to any individual who ceases to be resident or ordinarily resident in the United Kingdom on or after 17 March 1998, or becomes resident or ordinarily resident in the United Kingdom on or after 6 April 1998.’