Taxation of Chargeable Gains Act 1992 section 3E

Temporary non-residents

Section 3E deals with the attribution of gains from non-UK resident close companies to individuals who leave the UK temporarily and then return, ensuring that gains arising during the period of absence are taxed on their return.

• Where a gain accrues to a non-UK resident close company during an individual's temporary period of non-residence, the individual's share of that gain is treated as accruing in the tax year they return to the UK
• If the individual uses the remittance basis in the year of return, unremitted portions of the gain remain subject to the remittance basis rules rather than being taxed automatically on return
• Losses that would have reduced or eliminated attributed gains during the period of absence are similarly treated as accruing in the period of return, preserving the offset
• Double taxation treaties cannot prevent a capital gains tax charge arising under this section