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HMRC internal manual

Capital Gains Manual

Arrival in and departure from UK: temporary non-residence: exceptions to the exclusion from section 10A: example - year of departure 2012-13 or earlier


Mr and Mrs Brown, who have lived in the UK all of their lives, leave the UK on 15 November 2009 for Mr Brown to take up a three year contract of employment abroad.

They resume tax residence in the UK on 1 December 2012.

Mr Brown had acquired a property in the UK on 4 March 2002. On 12 June 2010, he gave the property to Mrs Brown. Mrs Brown sold the property on 10 March 2011 realising a gain of £100,000.

TCGA92/S58 applies to the gift by Mr Brown, so that for Capital Gains Tax purposes at the time of transfer neither gain nor loss arises. On the sale by Mrs Brown, the gain is treated as accruing in the year of return as she fulfils all of the conditions for TCGA92/S10A to apply, and the asset is not excluded from the scope of TCGA92/S10A (subsection (3)(b)).