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HMRC internal manual

Capital Gains Manual

Operation of S10A for Non-UK Domiciled individuals - Transitional rules for Remittance Basis users for pre 2008-09 gains - year of departure 2012-13 or earlier

There are transitional rules in Paragraph 84 Schedule 7 FA 2008 that ensure that capital gains for years prior to 2008-09 continue to be taxable when remitted by applying TCGA92/s12, as amended by Finance Act 2008, as if the individual had made a claim under ITA07/s809B for the remittance basis of taxation to apply for the relevant year.

However the temporary non-residents rules in TCGA92/s10A do not apply to any part of the gain remitted to the UK in tax year 2007-08 or any earlier year.


Mr A is non-UK domiciled and elects for the remittance basis for 2008-09 and later years.

He was resident in the UK for 4 of the previous 7 years of assessment before leaving the UK in 2006-07.

He realises a large gain in 2007-08 on assets acquired a number of years ago.

He returns to the UK in 2008-09.

The gain arises in an intervening year (2007-08).

Mr A remitted half of the gain in 2007-08 and the remainder in 2009-10.

S10A does not apply to the part of the gain remitted in 2007-08.

S10A applies to the remainder of the gain for 2008-09. This remaining part of the gain is chargeable when remitted. In this example this would be 2009-10.

If a gain arises in an intervening year and that intervening year is 2008-09 or later, where any part of that gain is remitted before the year of the return, that part of the gain chargeable for the year of return. The normal remittance basis rules would apply to any remaining part of the gain.