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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Arrival in and departure from UK: meaning of ‘temporary non-residence’ - year of departure 2013-14 or later

Section 10A TCGA 1992

With the introduction of the Statutory Residence Test changes were made to how section 10A operates, however there are similarities in the way Section 10A applies to individuals for departures from the UK in the years to 2012-13 and from 2013-14.

The provisions for both periods broadly aim to charge any gains that accrue in the period when the individual was not UK resident to capital gains tax by treating them as accruing in the year or residence period in which the individual resumes UK residence.

This guidance (from CG26500) details the rules as they apply for departures from the UK in 2013-14 or a later year. If the year of departure was 2012-13 or an earlier year, then the guidance from CG26100 should be followed.

A main difference between the ‘old’ and ‘new’ rules is the definition of a period of temporary non-residence. The ‘new’ rules also define other terms see CG26540.

When considering if section 10A can be applied it is necessary to consider the residence position of an individual for up to seven years prior to the year of departure. So if the year of departure is a year from 2013-14 to 2019-20 this earlier period may include the year 2012-13 or an earlier year.

Unless an election is made the residence position for each of the years up to and including 2012-13 is determined using the rules for determining a persons residence position that were in place for those years. If the year of departure is 2013-14, 2014-15 or 2015-16 an election can be made by an individual so that their residence position for one or more of the tax years up to 2012-13 can be determined in accordance with the rules within the Statutory Residence Test. For further guidance on transitional rules and how an election should be made see CG26800+.