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CGT - Temporary non-residence, Am I missing something

CGT - Temporary non-residence, Am I missing...

My client has been working overseas for several years. Non-res no probs and HMRC know this.

He bought a property in 1995 (when he was UK res) and sold it in June 2010 (when he was not). He came back in August 2011, 11/12 not the year of sale.

I need to check when he became non-res but my reading of s10A TCGA says "between year of departure and year of arrival there must be fewer than five years".

So if my client has been overseas for 10 years, say, it looks like s10A does not operate. Then what, no CGT? Surely it can't be simple.

It's very late. Am I being stupid?



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24th Nov 2011 09:43

Yes - that simple

Non-residents are generally not liable to UK CGT. The temporary non-residents rule was brought in to catch people just going abroad for a couple of years to avoid a big CGT bill. Your client has been non-res for more than 5 years and made a disposal before the year in which he returned - so he has no CGT to pay. Very simple!


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