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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Capital Gains manual: individuals: effects of residence, ordinary residence and domicile: temporary non-residents: Arrival in and departure from UK: temporary non-residence: gains or losses excluded from TCGA92/S10A - year of departure 2012-13 or earlier

Where assets have been acquired by the individual after becoming tax resident abroad any gains realised on those assets in the intervening years (that is, the years between the tax year of departure and the tax year of return) will in general be excluded from the scope of TCGA92/S10A and hence from the charge under TCGA92/S2, see CG26230. Similarly losses accruing in such circumstances will not be allowable.

There are exceptions to this general rule. Where an asset held before departure stands at a gain, and that gain is rolled-over or its accrual is otherwise deferred until another asset is disposed of during the period of absence, then TCGA92/S10A contains provisions which prevent such gains escaping tax. See CG26240 and CG26250.

This exclusion from the scope of TCGA92/S10A will not apply to assets held in a non-resident trust or closely controlled non resident company. The exclusion does not apply to assets that are chargeable to NRCGT. See CG26310.