losing UK tax residence triggering CGT?

in what circumstances can losing UK tax residence trigger a charge to UK CGT?

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 a prospective individual client mentioned becoming liable to UK CGT on losing her UK residence - I am curious as to what sort of asset could trigger this charge - any ideas?

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By taxdigital
01st Jun 2023 12:13

s.1A(3): A person who is not UK resident for a tax year is chargeable to capital gains tax on chargeable gains accruing to the person in the tax year on the disposal of—

(a) ASSETS situated in the United Kingdom that have a relevant connection to the person's UK branch or agency and are disposed of at a time when the person has that branch or agency (see section 1B),

(b) assets not within paragraph (a) that are INTERESTS in UK land (see section 1C), and

(c) ASSETS (wherever situated) not within paragraph (a) or (b) that derive at least 75% of their value from UK land where the person has a substantial indirect interest in that land (see section 1D and Schedule 1A).

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Replying to taxdigital:
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By Justin Bryant
01st Jun 2023 12:20

That does not of course answer the question. Much to DN's annoyance, there is currently no CGT exit charge for individuals (ignoring s168 TCGA 1992 and other "funnies").

https://web.archive.org/web/20220523101522/https:/www.taxpolicy.org.uk/2...

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By leeanthonyblackshaw
01st Jun 2023 12:26

Perhaps TCGA 1992, s168?

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By taxdigital
01st Jun 2023 12:40

May be then s.80?

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By nick farrow
01st Jun 2023 12:41

thanks all - i will look at this

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By nick farrow
01st Jun 2023 12:41

thanks all - i will look at this

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By nick farrow
01st Jun 2023 12:53

I am now pretty sure it related to ERS

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By Cinnamon009
01st Jun 2023 14:30

I've seen it occur when shares were transferred from a Director to another Director/Employee at nil cost. The gain on the shares is held over by joint election between them under s165 and there is an ERS charge on the Director acquiring the shares.

However, if the employee loses UK residence within 6 years then they are immediately chargeable to CGT on the gain held over.

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Replying to Cinnamon009:
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By nick farrow
01st Jun 2023 15:08

thanks Cinnamon

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By Montrose
04th Jul 2023 15:32

Not yet[subject to TCGA s168 etc] BUT this is vulnerable to a Labour government potential change. Many other countries do have such a charge.

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By The Dullard
04th Jul 2023 15:44

Does the client own any companies?

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Replying to The Dullard:
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By nick farrow
04th Jul 2023 16:20

I don't think so - I am not sure whether client has been engaged or not - i will check with my colleague

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