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HMRC internal manual

Capital Gains Manual

Arrival in and departure from UK: importance of establishing the correct ‘year of departure’ 2013-14 or later

With the introduction of the Statutory Residence Test certain new terms were introduced. These are detailed in CG26540.

Both the existing provisions of TCGA92/s10A and the new provisions that were introduced alongside the Statutory Residence Test use the term ‘year of departure’ however its meaning in the provisions is different.

For simplicity these are differentiated in this part of the guidance as ‘new’ and ‘old’ S10A.

Under the ‘old’ S10A the definition of ‘year of departure’ can be found at CG26111 and for the ‘new’ S10A see CG26540.

Where there is a year of departure of 2012-13 or an earlier year the old provisions (see CG26110+), ‘old’ S10A will continue to apply so gains of an intervening year would be assessed in the year of return.

Where there is a year of departure of 2013-14 or a later year the new provisions and the ‘new’ S10A apply and gains would be assessed in the period of return.

If for an individual there is an overlap created by the ‘old’ and ‘new’ definitions of year of departure then the provisions of the ‘old’ s10A will continue to apply. See CG26506.