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Where Taxpayers and Advisers Meet

Chargeable event gains and nonresident

Nonimous
Posts:90
Joined:Thu Jul 16, 2009 12:39 pm
Chargeable event gains and nonresident

Postby Nonimous » Thu May 05, 2022 2:49 pm

As the title may suggest, client is not UK resident (and hasn't been for some time) and has a chargeable event gain

IPTM3731 mentions that time apportionment is available for UK policies issued after 6.4.13 where there are periods of non-residence. Policy is older than that, so I revert to my assumption that UK source = UK tax unless treaty says otherwise

However, IPTM3734 then cheerfully informs us that it isn’t taxable at all in the UK if the individual is nonresident unless the non-residence is temporary (which it isn't)

What? Unusually despite the top slicing this does matter, as client has a capital gain on a UK property and so the rate of capital gains is affected by whether or not said chargeable event is subject to UK tax.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Chargeable event gains and nonresident

Postby maths » Wed May 11, 2022 5:04 pm

If the client is non-resident in the tax year in which the chargeable event occurs then no UK tax charge arises (unless temporary non-resident).


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