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HMRC internal manual

Capital Gains Manual

Arrival in and departure from UK: temporary non-residence: section 10A example 2 - year of departure 2013-14 or earlier

Mr Klein, who has lived all his life in the UK, leaves the UK in the tax year 2019-20.

He resumes tax residence in the UK for the 2022-23 tax year.

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 2019-20 split year treatment applies from 6 August 2019 and for 2022-23 up to 1 September 2022. There are no Treaty residence considerations.

Mr Klein fulfils all the conditions in TCGA92/S10A.

  • 2022-23 is split into two residence periods, i.e. non UK part 6/4/22 to 1/9/22 and UK part 2/9/22 to 5/4/23.
  • The period of return is 2/9/22 to 5/4/23 because this is the first period after period A for which there is sole UK residence.
  • Period A is 6/4/19 to 5/8/19. (the last period of sole UK residence).
  • 2019-20 is the year of departure because it includes period A.
  • The period of temporary non-residence is 6/8/19 to 1/9/22. This is 5 years or less.

A chargeable gain accrues to Mr Klein in the period of temporary non-residence.

In this example Mr Klein will be chargeable under Section 10A in the tax year of return to UK residence (2022-23) on the gain of £15,000.

If the gain had instead accrued on 20 April 2022 then section 10A would still be relevant because the gain would have accrued in the period of temporary non-residence.