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Home›Services›Does Capital Gains Tax Apply To UK Non-Residents?

Does Capital Gains Tax Apply To UK Non-Residents?

By Chris
December 9, 2020
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In the UK an individual is generally only liable for capital gains tax (CGT) on the sale of an asset if they are resident in the UK so non resident CGT is not payable if you are not a resident. You may, however, be liable for CGT if you are temporarily not living in the UK – for example if you are living abroad for a few years.

If you are temporarily non-resident, then in the year in which you return to the UK you may be liable for any capital gains or losses that occurred during the period that you were absent. There are rules in place to prevent people from leaving the UK when disposing of an asset to avoid CGT liability. Normally no CGT is applied if the asset that was sold during the period of temporary non-residence was also acquired during the same period. This means, in effect, that only assets held prior to leaving the UK are liable for CGT.

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