CG26665 | Operation of S10A for Non-UK Domiciled individuals - Remittance Basis - year of departure from 2013-14 but departure before 8 July 2015

It is possible that an individual returning to the UK in 2017/18, or a later year, will become deemed domiciled in the UK for the year that they return under either condition A or B in S835BA ITA 2007.

If an individual left the UK before 17/8/2015 and, on return, falls within the temporary non-residence rules within s10A, then transitional rules apply. These rules allow a claim to be made for the remittance basis to apply to the gains arising in the temporary period of non-residence that are treated as accruing in the year or period of return.

Where a claim is made s890C, s809G and s809H ITA 2007 do not apply.

| Example\nA is non-domiciled in the UK and leaves in 2014/15. He returns to the UK becoming resident in the UK again for 2018/19.\nOn his return he is deemed domiciled from 6/4/18 and is also within the scope of the temporary non-residence rules.\nIn 2017/18 while overseas he disposed of an asset he had held for many years realising a gain of £20,000. The proceeds of the sale are retained in a bank account outside the UK.\nA may make a claim for the remittance basis to apply to the gains of £20,000 which would otherwise be treated as gains accruing for 2018/19. | |——————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————|

Sch 8 para 16 FA(No2) 2017