CGT non resident/split year tax treatment

[petergibbinson]

Does the split year tax concession apply to capital gains tax as it does to income?
e.g. leave UK in Jan 2007 return November 2010
Buy an asset in May 2007 dispose of asset in March 2010..no GCT due as bought and sold whilst NR and NOR in full tax years of absence.
However what if the asset was bought in May 2007 and sold in September 2010 ..does the split year tax treatment apply to the disposal? Or does ther fact it's sold in a tax year in which you are not NR and NOR for the full tax year mean CGT is due ?

[Peter D]

Hi Peter,
To be UK CGT exempt you have to be absent from the UK for 5 full tax years. Regards Peter

[petergibbinson]

The 5 year rule only applies to assets bought/acquired prior to leaving the UK , Assets bought and sold whilst non resident are exempt..see page 2 of
http://www.hmrc.gov.uk/helpsheets/hs278.
"An individual may acquire assets after leaving the UK for a period of temporary residence abroad. If such assets are disposed of in an intervening year, any gains or losses on such assets are not normally treated as arising int he year of return"
I just need to know if the split year treatment as per my example applies.

[anon123]

Capital gains tax is charged if a person is resident at any time during the tax year so all gains from disposals made in the year of arrival are chargeable to CGT.

By concession (ESC D2) split year treatment is available but only if the person has not been resident or ordinarily resident at any time during the 5 tax years immediately before they arrive.

If a person was temporarily non resident (for less than 5 complete tax years) then gains and losses arising during the period of non residence are chargeable in the year of return to the UK unless they relate to assets acquired while overseas.

[julischevalier]

Has this actually changed so that it is now five calendar years or is it still five complete TAX years? If someones moves abroad on 6 April 2020 that would mean they would need to stay abroad until 6 April 2026 with the first year comple tely ignored because they were one day late.

If they had moved on 4 April 2020 they would be able to return on 6 April 2025 saving a whole year - I had thought they changed this and it was now calendar rather than tax years

[maths]

5 complete years; no longer 5 tax years.