The 5 year rule - Living Overseas as UK Non Tax Resident

[ProfRogers]

Hi. Just so I understand the 5 year rule a little better for being a UK Non Tax Resident, I have created this simple example.
(We will presume in this example that I am correctly following the UK sensitive ties rules for spending the appropriate number of days in the UK.

So .... lets say I live 6 years overseas as a non UK tax resident, but I make a £1m Capital Gain EVERY ONE OF THOSE YEARS = £6m.
I then choose to RETURN to the UK on Year 7 as a tax paying resident. In theory would my CGT bill be £0?

[wamstax]

Depends on the nature and situation of the assets purchased and disposed of.

[AGoodman]

I would say that, assuming the disposals are not related to UK land in any way, you would not have a UK CGT liability on your return. The timing of the gain is irrelevant provided you were non-UK resident in the year/split year when you made it.

[wamstax]

While I agree in normal simple cases with Goodman, tax is never so simple and there are numerous exceptions to the rule of thumb that he mentions. Basically I would add that where any gain was related in any way to a period of residence before his departure - e.g. assets held before departure/no gain-no loss spousal transfers/certain trust transactions/offshore companies/ acquisitions on rolled over basis and such complex matters. So if the £1M per annum arose from disposals of assets that were linked to a period of prior residence then UK CGT could apply.

[wamstax]

Split years can affect the position for the periods