CGT and non-residency

[saunders]

I am going to be working in China where capital taxes are low. I may be resident there for 5 years. My question relates to UK CGT.

If I dispose of assets, investment property in UK, and shares while I am non-resident and subsequently return to UK before 5 years I understand that CGT would become due on my return. Can anyone tell me if the 5 years runs from the date of disposal, or will any disposal during the period of non-residency not be liable for CGT?

[hashman]

You have to be out of the UK for 5 full tax years otherwise the gains are deemed to arise on your return to this country. This assumes we talking about assets you currently own and not assets that you acquire whilst non resident.

[saunders]

Thanks for your lightning response. To take an example, if am out of the UK for 5 full tax years, and dispose of an asset acquired before leaving the UK in say year 4 of my absence, would the gain be deemed to arise on my return?

[hashman]

No

[saunders]

Thanks.