Taxation of Chargeable Gains Act 1992 section 1N

Section 1M(1): assets acquired in temporary period of non-residence

Section 1N sets out the circumstances in which an asset acquired during a temporary period of non-residence is excluded from the charge on gains that would otherwise arise under the temporary non-residence rules in section 1M(1).

• An asset acquired by an individual during the temporary period of non-residence is generally excluded from the section 1M(1) charge, provided it was not obtained through a disqualifying no gain/no loss disposal, its acquisition cost was not reduced by roll-over or similar relief linked to a UK resident disposal, and it is not an interest arising under a settlement.
• The exclusion is lost where a new asset replaces an old asset and the gain or loss on disposal of the new asset is calculated by reference to the old asset, if the old asset would not itself qualify for the exclusion.
• A UK resident disposal means a disposal by a person who acquired the asset at a time when they were UK resident and were not treated as non-resident under a double tax treaty.
• A disqualifying no gain/no loss disposal is a UK resident disposal that takes place on a no gain/no loss basis under the rules for transfers between spouses or civil partners, disposals on the death of a life tenant, or certain disposals of heritage property.