A client was overseas for several years, then returned in early 13/14. They had a home in the UK and a home overseas. Therefore I have used Case 4 to determine they were non-UK resident until they met the 'only home' condition by selling the overseas home.
My question is, given the client is non-UK resident until "the day before the earliest point at which you meet the only home test" and then UK resident from the following day, doesn't that mean that they will ALWAYS be liable to UK tax on the disposal of the foreign home?
As in, they sell the foreign home on 01/05/13 so meet the 'only home' test on that date. The day before that is therefore the last day they were non-UK resident, therefore they were UK resident when they sold the overseas home.
Sorry if this is painfully obvious to all but me, it just seems like a bit of a trap, that the event that brings overseas income into charge in the UK is the disposal of an item giving rise to tax.