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TCGA92/S86A

TCGA92/S10A* prevents a taxpayer avoiding Capital Gains Tax by leaving the UK, disposing of assets while they are non-resident and then returning to the UK. It applies if a UK resident taxpayer leaves the UK for a period of up to five complete tax years. Gains that accrued to the taxpayer while they were non-resident are treated as accruing in the year they return to the UK. See CG26100 for guidance on TCGA92/S10A*.

Section 10A will apply to any TCGA92/S86 gains that accrued in the period of temporary non-residence. That gives rise to a potential double charge if the same gains have also been taxed under TCGA92/S87. This will happen if trustees make capital payments to beneficiaries during the period. The capital payments will be matched to the trustees� gains. If those gains accrued in the period of temporary non-residence they will be charged again on the settlor when they return.

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