CG26161 - Arrival in and departure from UK: temporary non-residence: practical questions
To decide whether an individual is within the charge under TCGA92/S10A, the four conditions described at CG26156 can be framed as a series of questions.
- Has the individual become resident or ordinarily resident in the UK during the year of assessment and is not Treaty non-resident?
- Was the individual previously resident or ordinarily resident and not Treaty non-resident at some earlier time before he became not resident and not ordinarily resident?
- Are there fewer than five complete tax years between the year of departure and year of return to the UK?
- Was the individual resident or ordinarily resident and not Treaty non-resident in the UK for any part of at least four out of the seven tax years before the year of departure?
If all of the questions can be answered 'Yes' then the individual will be chargeable on gains accruing in the period of non-residence under either TCGA92/S10A (in respect of gains accruing in the intervening years) or TCGA92/S2 (in respect of gains accruing in the years of departure and return), except where the gains are excluded, see CG26230. Notice that because of the consistency between section 10A and ESC D2 the same questions also serve to decide whether or not the concessionary split-year treatment is available in the years of departure and return.
Individuals who went abroad on or before 16 March 1998 will not be chargeable on gains made while not resident and not ordinarily resident, even though they may later resume tax residence in this country.