03: Capital gains tax (CGT) liability

If you are resident or ordinarily resident in the UK, you are liable to CGT on your gains from disposing of assets wherever these are situated. If you are neither resident nor ordinarily resident in the UK, you are still liable to CGT unless you have opted for the remittance basis. In any event, if you are a temporary non-resident, or trade in the UK and dispose of UK assets used for your trade you will be liable to CGT.

  • If you are resident and ordinarily resident outside the UK for less than five tax years, you are normally liable to CGT on your return to the UK on disposals abroad of assets that you acquired before your departure (re-entry charge).
  • There is no re-entry charge if you were not resident and not ordinarily resident in the UK for four of the seven tax years before the year of your departure.
  • Non-UK domiciled individuals who are resident or ordinary resident in the UK or are temporary non-residents are currently taxable on non-UK gains unless they opt for the remittance basis, in which case only gains remitted to the UK are taxable.

See also Capital Gains Tax.