CGT + Non Resident

CGT + Non Resident

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We have a client who has moved out of the UK permanently. I have confirmed with HMRC that he will be treated as non-resident & not-ordinarily resident from day of departure.

So, he has a farm in the UK which is in the process of being sold. In addition, a rental property that he had has also been sold - both seperate transactions.

From what I've read, I believe that CGT will not be due as he is not resident. And so long as he is not resident for 5 complete tax years, any gains made in those years will not be subject to CGT.

However if he comes back to the UK within the 5 years, the gains will accrue in the year of arrival back in the UK.

Please could someone confirm whether my thinking is right and:

- is the farm free from CGT as it was an asset used in a trade?
- if he come back to the UK, the gains made in the intervening periods will be calculated using the rules of the tax year in which the disposal was made, but is subject to the tax rates in the year of arrival.

Any help is greatly appreciated.

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