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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Operation of S10A for Non-UK Domiciled individuals - Remittance Basis claimed - year of departure 2013-14 or later

Where an individual is not domiciled in the UK and has elected to be taxed on the remittance basis, TCGA92\S10A applies in the same way as for a UK domiciled individual; any gains to which section 10A can apply are ‘foreign chargeable gains’ and are subject to the normal remittance basis rules.

Example

Mr A a non-UK domiciled individual leaves the UK in year 2016-17 and becomes non-resident from 6/4/17.

Whilst living abroad and in 2019-20 he realises a gain on an asset that has been held for many years. Mr A remits all of the gain to the UK in 2019-20. He then returns to the UK on 1 September in 2020-21. (2020-21 is a split year and the UK part starts on 1/9/20).

The capital gain made in 2019-20 is a gain that has arisen in a period of temporary non-residence and is regarded under S10A as a foreign chargeable gain of the period of return which would fall in 2020-21.

An election for the remittance basis has been made for 2020-21 so all of the foreign chargeable gain will be assessable on the remittance basis.

Further details regarding the operation of the Remittance Basis can be found in the Residence, Domicile and Remittance Basis manual from RDRM30000.

S10A operates in the same way for both UK domiciled and non-domiciled individuals to exclude gains from its scope where the asset disposed of was acquired during the period of temporary non-residence. Further information is given in CG26600.