Capital gains tax residence

Published: 22 Feb 2014

 

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The following rules do not apply to non-residents owning residential property in the UK.  Please follow capital gains tax for non-resident homeowners for the related guidance.

 

A taxpayer who is non-resident for five consecutive tax years will no longer be liable to UK capital gains tax. However, a liability to tax on a disposal made by a non-resident may arise in the country in which that individual is residence.


If an individual is non-resident for a shorter period, they continue to be exposed to capital gains tax. As a temporary non-resident chargeable gains or allowable losses are calculated in the year in which they occur, but are not payable until 31 January following the end of the tax year of return. Gains and losses during the period of absence are netted off. This can be beneficial as capital losses can effectively be carried back during the absence period. Only assets that a taxpayer owned before leaving the UK are subject to the above rules.

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