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