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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
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Arrival in and departure from UK: temporary non-residence: interaction with DTA’s - impact on length of period of temporary non-residence- year of departure 2013-14 or later

An individual is either resident or not resident in the UK for 2013-14 and later years.

When an individual is UK resident in a tax year, that year may be a split year in regard to the individual, but it does not affect that individuals residence status for the year. Split year treatment merely allows a tax year to be split into two residence periods, with different rules applying to the UK part of a split year and to the overseas part of a split year.

The period of temporary non-residence is the period between the end of period A and the next residence period for which the individual has sole UK residence. So both the start date and end date of the period of temporary non-residence are determined by reference to residence periods when an individual has sole UK residence. Periods of UK residence and Treaty residence in another territory may overlap and the impact of any overlap must be considered.

When an individual is also Treaty non-resident at some point in a tax year:

  • If the residence period is the tax year they do not have sole UK residence for that residence period.
  • If the residence period is the overseas part of a split year there is no direct impact in so far as this would already not be a residence period of sole UK residence.
  • If the residence period is the UK part of a split year they do not have sole UK residence for that residence period.

The examples in CG26690 demonstrate the different outcomes.

The same principles apply when considering the residence periods needed to determine the period of return to the UK. Examples are at CG26695.