Section 3E — Taxation of Chargeable Gains Act 1992: Temporary non-residents

Temporary non-residents 3E 1 This section applies if—

a an individual is temporarily non-resident, and b a gain or loss accrues to a company in a tax year falling wholly or partly in the temporary period of non-residence.

2 So much of the gain as would, as a result of section 3, have been treated as accruing to the individual in the tax year if the residence assumption were made is to be treated as accruing to the individual in the period of return.

3 But if—

a the remittance basis applies to the individual for the tax year that comprises or includes the period of return, and b any part of the gain has not been remitted to the United Kingdom before the period of the return, subsection (2) has effect subject to the further application of Schedule 1 (as read with section 3D) in relation to that part of the gain.

4 Paragraph 5 of Schedule 1 applies for the purposes of subsection (3) as it applies for the purposes of that Schedule.

5 So much of the loss accruing in the tax year as would, in accordance with section 3(9), have reduced or extinguished a gain treated as accruing to the individual in that year as a result of section 3 if the residence assumption were made is to be treated as accruing to the individual in the period of return.

6 For the purposes of this section the “residence assumption” is—

a that the individual was resident in the United Kingdom for the tax year in which the gain or loss accrued to the company, and b that the tax year was not a split year as respects the individual.

7 Nothing in any double taxation arrangements prevents a charge to capital gains tax arising as a result of this section.

8 For the purposes of this section each of the following expressions has the meaning given by Part 4 of Schedule 45 to the Finance Act 2013 (statutory residence test: anti-avoidance)— “the period of return” “temporarily non-resident” “the temporary period of non-residence”.