Hi,
I am likely going to leave the UK halfway through the tax year 21/22 to start full time employment in a different country. I have some CGT gains on shares which I am planning to realise after leaving the UK. I need to be 100% sure that UK will not want to tax me on these sales (I will not return within five years). After reading on the HMRC web site it sounded like I wouldn't have to worry about any UK tax, but the double tax treaty made me wonder... See below:
HMRC web site:
If you’re abroad
You do not pay Capital Gains Tax on other UK assets, for example shares in UK companies, unless you return to the UK within 5 years of leaving.
However, the double tax treaty with this country says the following:
6. Notwithstanding the provisions of paragraph 5, gains from the alienation of
shares or other rights in a company, or of interests in a partnership or trust derived
by an individual who has been a resident of a Contracting State and who has
become a resident of the other Contracting State, may be taxed in the first mentioned State if the alienation of the property occurs at any time during the
seven years next following the date on which the individual has ceased to be a
resident of the first-mentioned State. The gain so taxed shall not include the gain, if
any, that accrues during the period during which the individual is or was a resident
of the other Contracting State.
Can someone please clarify if there is any way HMRC can tax me on these sales?
Many thanks.
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