CGT liability during period of non-residence

Radioactive · 11 July 2017 at 10:19PM

I have been living and working in the (CGT-free) Middle East for many years. During that time I purchased some offshore unit trusts. I now plan to return to the UK. Will any future UK CGT liability be based on the increase in value over my total period of ownership or just the period while I am UK tax resident? For example:

In 2010 I purchased a number of shares at £100 each (while tax resident in the Middle East)
In 2017 I become tax resident in the UK and the shares are now worth £120 each.
In 2020 (while still tax resident in the UK) I sell the shares for £130 each

Will my gain (for UK CGT purposes) be £30 per share or £10 per share? I assume it will be £30 per share. If so, are there any measures I can take (other than selling the shares) prior to my becoming UK tax resident to reduce the subsequent CGT liability?

Cook_County · 12 July 2017 at 10:41PM

Are these reporting or non-reporting funds?

SYTax · 13 July 2017 at 9:21PM

Assuming you are UK domicile, if you sell while UK resident you will be subject to UK tax on the full profit (£30 per share in your example).

Whether the fund is reporting or non-reporting will decide whether his is income or a capital gain.

I can't think of any other steps except selling before becoming UK resident. You could always buy again (wait 30 days after sale) if you really want to hold those particular funds.

CGT liability during period of non-residence

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