Arrival in and departure from UK: temporary non-residence: section 10A example 1 - year of departure 2013-14 or later
Mr Simmons, who has lived all his life in the UK, leaves the UK on 5 August 2019.
He returns to the UK on 2 September 2022.
He realises a chargeable gain (on an asset acquired before he ceased to be resident in the UK) of £15,000 on 20 April 2020.
For both 2019-20 and 2022-23 split year treatment does not apply and he was not Treaty resident in another territory in either of these years.
Mr Simmons fulfils all the conditions in TCGA92/S10A.
- 2022-23 is the period of return.
- 2019-20 is the year of departure.
- Period A ends on 5/4/20.
- The period of temporary non-residence is 6/4/20 to 5/4/22, which is 5 years or less.
- He had sole UK residence for at least four out of the seven tax years immediately prior to his year of departure.
A chargeable gain accrues to Mr Simmons in the period of temporary non-residence.
In this example Mr Simmons will be chargeable under Section 10A in the period of return (2022-23) on the gain of £15,000.
If the gain had instead accrued on 20 April 2022 then section 10A would not need to be considered because the gain accrued in the year of return 2022-23. This is not a split year so the gain would already be chargeable under TCGA92/S2.