SolvedCG25730 | Arrival in and departure from the UK: arrivals and ESCD2 - to 5 April 2013
From HM Revenue & Customs · Capital Gains Manual
In order for the concessionary treatment described in CG25720 to apply to the year of assessment in which an individual becomes resident in the UK (the ‘year of arrival’), the individual must not have been resident or ordinarily resident at any time during the five years of assessment immediately preceding the year of arrival.
Note that the concessionary treatment under ESCD2 will always be available to an individual who arrives in the UK to take up residence for the first time and who has not been resident for tax purposes previously.
Example
Laura has been resident in Austria since 31 March 2006. Before that date she was resident in the UK. On 15 January 2011 she disposes of an asset and a gain of £50,000 accrues. On 1 April 2011 she returns to the UK and is resident in the UK from that date.
Under TCGA92/S2 the gain is chargeable on Laura in year of assessment 2010-11 because she is resident in the UK for part of that year. Paragraph 1 of ESCD2 does not apply the concessionary treatment because she was resident in the UK for part of 2005-06, which was one of the five years of assessment immediately preceding her year of arrival.