Taxation of Chargeable Gains Act 1992 section 1M

Temporary non-residents

Section 1M deals with the capital gains tax treatment of individuals who leave the UK temporarily and dispose of assets during their period of non-residence, ensuring that gains and losses are brought back into charge when they return.

• Gains or losses arising on asset disposals during a temporary period of non-residence are treated as accruing in the period when the individual returns to the UK, unless the asset was acquired during that non-residence period and is excluded under the rules for assets acquired while away.
• Where the remittance basis applies in the tax year of return, any gain that was remitted to the UK during the temporary absence is treated as having been remitted in the period of return, so it remains within the scope of the remittance basis rules.
• Gains that would have been attributed to a settlor under the rules for non-resident or dual-resident settlements, had the individual remained UK resident, are also treated as accruing in the period of return.
• Double taxation agreements cannot override the capital gains tax charge arising under this section, and the section does not disturb any gains or losses that would already have been chargeable or allowable without these temporary non-residence rules.