UK capital gains tax liability of temporary non-residents

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

UK capital gains tax liability of temporary non-residents

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
imgtext

Introduction

Any individuals returning to the UK after a period of absence should consider whether the temporary non-residence anti-avoidance provisions apply.

The temporary non-residence rules apply where an individual has been resident in the UK at any time during at least four of the seven tax years prior to departure and is non-resident in the UK for five years or less. Where this is the case, the anti-avoidance rules mean that certain types of UK and foreign income and gains which arose during the period of non-residence are taxed in the tax year in which the individual returns to the UK.

The temporary non-residence rules were significantly changed with effect from 6 April 2013 as part of the introduction of the statutory residence test. The legislation was then rewritten in 2019 with the intention to modernise and simplify the structure of the UK capital gains rules as well as to accommodate the rules on disposals of interests in assets relating to UK land by non-UK residents, without changing the meaning of the temporary

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+
  • 23 Jul 2025 11:20

Popular Articles

Outright gifts

Outright giftsAn outright gift is the most straightforward type of gift. It simply involves the outright transfer of property from one person to another with no conditions attached.This type of gift is most suitable for clients who want to pass over modest amounts, or give to responsible and capable

14 Jul 2020 12:22 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more Read more

Exporting goods ― proof of export

Exporting goods ― proof of exportIn addition to the requirements laid down in the Exporting goods ― overview guidance note, businesses intending to zero-rate exported goods must hold satisfactory evidence that the goods have been delivered to a destination outside of the UK. If satisfactory evidence

15 Dec 2020 14:02 | Produced by Tolley Read more Read more

BPR ― trading and investment businesses

BPR ― trading and investment businessesIntroductionThe basic qualification rules for business property relief (BPR) are illustrated in the Flowchart ― trading or investment business for BPR purposes.For an overview of BPR, see the BPR overview guidance note.Relevant business propertyThe main

14 Jul 2020 15:36 | Produced by Tolley Read more Read more