Capital gains tax | Commentary

C1.601 Residence

Capital gains tax | Commentary

Division C1.6     Foreign element

For updates affecting this Division please see Part C0 Updates

Foreign element—generally

C1.601 Residence

Finance Act 2013 made fundamental changes to the treatment of residence and ordinary residence. A statutory residence test was introduced from 2013/14 and the concept of ordinary residence was abolished from 6 April 2013, subject to certain transitional rules for individuals who were resident but not ordinarily resident in the UK at the end of the tax year 2012/13. The amendments are discussed in detail in Division E6.1. The commentary in this Division discusses the concept of residence and non-residence for capital gains tax purposes from 6 April 2013 and focuses particularly on the treatment of non-residents. The treatment of non-residents has been further amended by FA 2019 which introduced changes from 6 April 2019 to bring gains from all disposals of interests in UK land by non-UK residents into the charge to capital gains tax. Previously the charge only applied on residential property. In addition non-UK resident companies will be charged to corporation tax on their gains from disposals of UK land rather than CGT.

UK resident individuals

6 April 2019 onwards

From 6 April 2019 a UK resident person, other than a company, is charged to CGT on disposals of assets wherever situated if he is UK resident in any part of that year1, subject to

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