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HMRC internal manual

Capital Gains Manual

Gifts: hold-over relief: employment abroad

There are special rules about withdrawing held-over gains where an individual donee becomes non- resident because they have taken up an office or employment and all the duties are performed outside the UK. This guidance tells you about these rules.

Individual becomes resident again

If the individual

  • becomes resident again within three years of the date on which they ceased to be resident


  • they have not disposed of any or all of the asset in that period

then the period is ignored


  • the held-over gain remains undisturbed unless they become non-resident again before the original six year period from the date they acquired the asset, see CG67280, has elapsed. If this happens, you look at the case again using the appropriate rules for the new period of non-residence.

Individual remains non-resident

If the individual

  • remains non-resident beyond the three year point


  • disposes of the asset


  • you recover the held-over gain at the date they became non-resident. CG67340+ tell you how to do this.

Action in responsible office

In practice where a hold- over claim has been made by an individual donee who becomes non- resident because of their employment you should arrange to have their file brought forward at lengthy intervals to check

  • whether they have become resident again


  • whether they have disposed of any part of the asset.