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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Arrival in and departure from UK: temporary non-residence: gains of non-resident companies and settlements - year of departure 2013-14 or later

TCGA92/S13 provides that gains accruing to a non-UK resident company which would be a close company if it were resident in the UK, are attributed to UK resident participators in proportion to the extent of their participation, see CG57200+. Similarly TCGA92/S86 provides that gains accruing to a non-UK resident settlement of which a UK resident and domiciled individual is a settlor are attributed to the settlor, see CG38400+.

Where a UK resident and domiciled individual is temporarily non-resident and within the scope of TCGA92/S10A the provisions of Section 10A also apply to chargeable gains arising in the period of temporary non-residence which would have been attributable to the taxpayer under Section 13 or Section 86 if the taxpayer had been resident throughout, TCGA92/S10A(3).


Mr Defoe has a 95% interest in Castaway Cruises Limited, a company resident in the Bahamas. He left the UK in June 2019 and is not resident in the UK in either 2020-21 or 2021-22. He resumes UK residence in August 2022. In December 2020 the company disposes of land in Florida and realises a gain. If Mr Defoe had been resident in the UK at all times, section 13 would apply so that the chargeable gain accruing to the company would be computed as if it had been UK resident and 95% of that gain would be treated as accruing to Mr Defoe. The fact that Mr Defoe was not UK resident when the gain accrued to the company will not prevent part of the gain being attributed to him under section 13 and charged in the period of his return by virtue of section 10A, providing the other conditions necessary for section 10A to apply are met.