»Ê¹ÚÌåÓýapp

TCGA92/S13* provides that gains accruing to a non-UK resident company which would be a close company if it were resident in the UK, are attributed to UK resident participators in proportion to the extent of their participation, see CG57200+. Similarly TCGA92/S86 provides that gains accruing to a non-UK resident settlement of which a UK resident and domiciled individual is a settlor are attributed to the settlor, see CG38400+.

Where a UK resident and domiciled individual is temporarily non-resident and within the scope of TCGA92/S10A* the provisions of Section 10A* also apply to chargeable gains arising in the period of temporary non-residence which would have been attributable to the taxpayer under Section 13* or Section 86 if the taxpayer had been resident throughout, TCGA92/S10A(3)*.

Example

Mr Defoe has a 95% interest in Castaway Cruises Limited, a company resident in the Bahamas. He left the UK in June 2019 and is not resident in the UK in either 2020-21 or 2021-22. He resumes UK residence in August 2022. In December 2020 the company disposes of land in Florida and realises a gain. If Mr Defoe had been resident in the UK at all times, section 13* would apply so that the chargeable gain accruing to the company would be computed as if it had been UK resident and 95% of that gain would be treated as accruing to Mr Defoe. »Ê¹ÚÌåÓýapp fact that Mr Defoe was not UK resident when the gain accrued to the company will not prevent part of the gain being attributed to him under section 13* and charged in the period of his return by virtue of section 10A*, providing the other conditions necessary for section 10A* to apply are met.

*»Ê¹ÚÌåÓýappse provisions were re-written for disposals from 6 April 2019 see CG10150.