Our client will be non-resident for 2015/16. He is liquidating his UK company and, as I understand it, given his non-resident status, will not be required to pay UK CGT.
How much time can he spend in the UK in future years without losing the CGT exemption?
Comments gratefully received.
Replies (3)
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The answer to this question depends on a lot of information particularly his ties to the UK. However, to start with, if he spends 15 or less days in the UK he will be automatically non-resident.
Temporary non resident rules apply
The 'new' expat rules for CGT from April 2015 only relate to residential property disposals so for all other disposals the temporary NR rules continue to apply.
In short - any disposal made within 5 years of being UK resident (of assets held at time of UK residence) are potentially chargeable to CGT. The CGT charge is then triggered if taxpayer becomes UK resident again within that 5 year period.
If NR extends beyond 5 years then gain becomes free of CGT.
Don't forget Entrepreneurs' Relief
If the disposal would qualify for Entrepreneurs' Relief you should consider making a protective claim. Otherwise, he could resume residence within the five years and be out of date for a claim. The deadline for 2015/16 is 31 January 2018.