Malcolm Finney outlines some of the implications of temporary non-residence.
The temporary non-residence rules are anti-avoidance provisions and are somewhat complex in nature. The rules are primarily, although not exclusively, targeted at capital gains made in the period of temporary non-residence.
The relevant provisions (in TCGA 1992, s 1M and FA 2013, Sch 45) are designed to preclude a UK resident from spending limited time outside the UK, although becoming non-resident, with a view to then realising certain income and gains outside of any UK tax charge.
For departures after 5 April 2013, an individual is treated as temporarily non-resident if the period of non-residence is five years (note, not tax years) or less and prior to departure, the individual was resident for four or more tax years out of the seven tax years immediately preceding the year of departure. For earlier departures, the period of non
