Taxation of Chargeable Gains Act 1992 section 9

Residence, including temporary residence

Section 9 establishes how an individual's UK residence status affects their liability to capital gains tax, including special rules for individuals who are only temporarily resident in the UK and then leave.

• An individual who is UK resident for a tax year is generally chargeable to capital gains tax on gains arising in that year, whether the assets are located in the UK or overseas.
• Special "temporary residence" rules apply where an individual who was previously UK resident becomes non-resident for a limited period and then returns to UK residence — gains realised during the period of non-residence can be treated as arising in the year of return.
• The temporary residence provisions are designed to prevent individuals from briefly leaving the UK to dispose of assets and avoid UK capital gains tax, before returning to the UK shortly afterwards.
• These rules were amended by Finance Act 2019, Schedule 1, paragraph 2, which updated the framework for determining residence and the application of the temporary residence rules.

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