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HMRC internal manual

Capital Gains Manual

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Arrival in and departure from UK: temporary non-residence: interaction with DTA’s - impact on period of temporary non residence- leaving the UK examples - year of departure 2013-14 or later

Example 1

Mr Arnold has lived in the UK for many years but decides to leave the UK on 20 September 2015. He is not entitled to split year treatment for 2015-16. He becomes Treaty resident in Spain from 1 January 2016.

Mr Arnold is UK resident for the 2015-16 year.

His residence period is 6 April 2015 to 5 April 2016.

Mr Arnold does not have sole UK residence for the residence period because of his Treaty residence in Spain.

His last period of sole UK residence would have been the year 6 April 2014 to 5 April 2015.

2014-15 would be regarded as the year of departure and period A would end on 5 April 2015.

Assuming Mr Arnold returns to the UK so that s10A may be in point, the period of temporary non-residence for the purposes of s10A would start on 6 April 2015.

Example 2

Mr Brown has lived in the UK for many years but decides to leave the UK in 2015-16. He is entitled to split year treatment for 2015-16, with the overseas part of the year starting on 20 September. He becomes Treaty resident in Spain from 1 January 2016.

Mr Brown is UK resident for the 2015-16 year.

This year is split into two residence periods. The UK part is 6 April 2015 to 19 September 2015 and the overseas part is 20 September 2015 to 5 April 2016.

Mr Brown has sole UK residence for the residence period 6 April 2015 to 19 September 2015. For the overseas part he does not have sole UK residence. The Treaty residence in Spain has no impact on this point.

His last period of sole UK residence would be the UK part of the split year i.e. 6 April 2015 to 19 September 2015.

2015-16 would be regarded as the year of departure and period A would end on 19 September 2015.

Assuming Mr Brown returns to the UK so that s10A may be in point, the period of temporary non-residence for the purposes of s10A would start on 20 September 2015.

Example 3

Mr Clarke has lived in the UK for many years but decides to leave the UK in 2015-16. He is entitled to split year treatment for 2015-16, from 20 January 2016. He became Treaty resident in Spain from 1 January 2016.

Mr Clarke is UK resident for the 2015-16 year.

This year is split into two residence periods. The UK part is 6 April 2015 to 19 January 2016 and the overseas part is 20 January to 5 April 2016.

Mr Clarke does not have sole UK residence for the residence period 6 April 2015 to 19 January 2016.

His last period of sole UK residence would be the 2014-15 tax year i.e. 6 April 2014 to 5 April 2015.

His last period of sole UK residence would have been the tax year 6 April 2014 to 5 April 2015.

2014-15 would be regarded as the year of departure and period A would end on 5 April 2015.

Assuming Mr Clarke returns to the UK so that s10A may be in point, his period of temporary non-residence for the purposes of s10A would start on 6 April 2015.