CG26506 - Arrival in and departure from UK: importance of establishing the correct 鈥榶ear of departure鈥� 2013-14 or later - overlap between definitions

As stated in CG26505 there may be occasions where for an individual there is an overlap created by the old and new definitions of 鈥榶ear of departure鈥�. This is unlikely to affect many cases but it may occur where the individual:

  • first leaves the UK and the year of departure under the 鈥榦ld鈥� s10A provisions is 2012-13 or an earlier year
  • returns to the UK after a period of temporary non-residence
  • shortly after returning moves out of the UK again for a further period of temporary non-residence.

Where the 鈥榦ld鈥� and 鈥榥ew鈥� provisions overlap the 鈥榦ld鈥� provisions will continue to apply.

Example

Mr P has been resident in the UK for many years. He first leaves the UK for a period of temporary non-residence in 2011-12.

Mr P is not UK resident for 2012-13 and makes gains in that year.

Mr P returns to the UK in 2013-14 and is resident under the SRT rules for the year (but does not have sole UK residence for the year).

Mr P goes abroad again in 2013-14.

Mr P remains overseas for 2014-15 and makes gains in that year.

Mr P returns to the UK in 2015-16 and is resident for the year under the SRT rules (but does not have sole UK residence for the year). Mr P has sole UK residence for 2016-17.

The provisions are applied as follows:

2011-12 will be the year of departure under 鈥榦ld鈥� s10A.

2012-13 is an intervening year under 鈥榦ld鈥� s10A.

2013-14 will be a year of return under 鈥榦ld鈥� s10A and the gains from 2012-13 are chargeable for 2013-14.

2013-14 will also be a year of departure under 鈥榦ld鈥� s10A (in respect of the 2015-16 return).

2014-15 will be an intervening year under 鈥榦ld鈥� s10A.

2015-16 will be a year of return under 鈥榦ld鈥� s10A and the gains from 2014-15 are chargeable for 2015-16.

The 鈥榥ew鈥� s10A* provisions (see CG26510+) do not need to be considered in this example. If they were considered in isolation they would create an overlap with the first period of temporary non-residence and produce incorrect results for the years in which gains would be assessed.

*This provision was re-written for disposals from 6 April 2019 see CG10150.