CG26550 - Arrival in and departure from UK: temporary non-residence: main conditions for TCGA92/S10A* to apply - year of departure 2013-14 or later
CG26500 outlines the basic proposition for gains of an individual made in a period that is a period of temporary non-residence to be charged to Capital Gains Tax for the period of return to the UK.
For TCGA92/S10A* to apply, a number of conditions must be met. The highlighted terms are explained more fully in CG26540.
- The individual must resume residence in the UK and have a residence period which is also a period of sole UK residence.
- The sole UK residence period in 1) above must immediately follow a residence period that was not a period of sole UK residence.
- The residence period which is the sole UK residence period in 1) above must be the first residence period after period A for which the individual has sole UK residence.
- The period between the start of the residence period of sole UK residence in 1) above and the end of the period A is 5 years or less. (Period A will fall in or represent the year of departure).
- At least 4 out of the 7 tax years immediately preceding the year of departure were either a tax year for which the individual had sole UK residence or a split year that included a residence period for which they had sole UK residence.
When considering if section 10A* can be applied it may be necessary to consider the residence position of an individual for a number of years up to and including 2012-13. This could be for up to 7 years if the year of departure was 2013-14. These are referred to as pre-commencement years.
The residence position for the pre-commencement years is not determined in accordance with the Statutory Residence Test but is determined using the rules that were then in place unless an election is made. See CG26800.
Broadly an election can be made by an individual for one or more pre-commencement tax years so that their residence position can be determined in accordance with the rules within the Statutory Residence Test. For further guidance on how an election should be made see CG26800+. (Also see CG26540).
*This provision was re-written for disposals from 6 April 2019 see CG10150.