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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Arrival in and departure from UK: temporary non-residence: systematic approach - year of departure 2012-13 or earlier

If a gain accrues to an individual and at first sight it is not taxable because he or she was not resident in the UK when it accrued, you will wish to consider whether that gain is in fact chargeable to capital gains tax either: -

  • For a gain accruing in an intervening year by virtue of TCGA92/S10A, which treats the gain as accruing in the year he or she resumes residence in the UK,


  • For the years up to and including 2012-13, for a gain arising in the year of departure or return to the UK because the treatment afforded by extra-statutory concession D2, is not available so that the individual is charged to tax on all gains accruing at any time in the year they departed or arrived in the UK. (see CG26117).
  • For the years from 2013-14 for a gain arising in the year of return see CG26113.

(If there is no such gain then there is no reason to consider the operation of section 10A or ESCD2 at all.)

When a gain accrues after the year of departure, the question of chargeability can only be addressed when the individual resumes residence: only then can you judge whether their non-UK residence was indeed temporary.

If the gain accrued after the year of departure and during a tax year for the whole of which the individual was neither resident nor ordinarily resident in the UK, then on their resumption of residence in the UK TCGA92/S10A may apply to treat the gain as having accrued in the year of their return. See CG26156.

If the gain accrued during the tax year (up to and including 2012-13) in which the individual resumed residence in the UK then you must consider whether ESC D2 prevents the gain being chargeable under TCGA92/S2. See CG26117.